10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________

FORM 10-Q

_____________________________

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 1-11356

_______________________________

Radian Group Inc.

(Exact name of registrant as specified in its charter)

_______________________________

Delaware	23-2691170
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1601 Market Street, Philadelphia, PA	19103
(Address of principal executive offices)	(Zip Code)

(215) 231-1000

(Registrant’s telephone number, including area code)

_____________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  x	Accelerated filer  o	Non-accelerated filer  o	Smaller reporting company  o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 208,660,500 shares of common stock, $0.001 par value per share, outstanding on August 4, 2015.

TABLE OF CONTENTS

		Page Number
Glossary of Abbreviations and Acronyms		3
Cautionary Note Regarding Forward Looking Statements—Safe Harbor Provisions		7
PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	10
	Condensed Consolidated Balance Sheets	10
	Condensed Consolidated Statements of Operations	11
	Condensed Consolidated Statements of Comprehensive Income (Loss)	12
	Condensed Consolidated Statements of Changes in Common Stockholders’ Equity	13
	Condensed Consolidated Statements of Cash Flows	14
	Notes to Unaudited Condensed Consolidated Financial Statements	15
	Note 1 - Condensed Consolidated Financial Statements—Significant Accounting Policies and Business Overview	15
	Note 2 - Discontinued Operations	18
	Note 3 - Segment Reporting	20
	Note 4 - Fair Value of Financial Instruments	24
	Note 5 - Investments	27
	Note 6 - Goodwill and Other Intangible Assets, Net	30
	Note 7 - Reinsurance	32
	Note 8 - Other Assets	33
	Note 9 - Losses and Loss Adjustment Expense	33
	Note 10 - Long-Term Debt	36
	Note 11 - Accumulated Other Comprehensive (Loss) Income	40
	Note 12 - Income Taxes	41
	Note 13 - Statutory Information	42
	Note 14 - Selected Financial Information of Registrant—Radian Group—Parent Company Only	43
	Note 15 - Commitments and Contingencies	44
	Note 16 - Capital Stock	46
	Note 17 - Net Income Per Share	46
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	77
Item 4.	Controls and Procedures	78
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	79
Item 1A.	Risk Factors	81
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	83
Item 6.	Exhibits	83
SIGNATURES		84
EXHIBIT INDEX		85

2

GLOSSARY OF ABBREVIATIONS AND ACRONYMS

The list which follows includes the definitions of various abbreviations and acronyms used throughout this report, including the Condensed Consolidated Financial Statements, the Notes to Unaudited Condensed Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Term	Definition
2014 Form 10-K	Annual Report on Form 10-K for the year ended December 31, 2014
2014 Master Policy	Radian Guaranty’s Master Policy that became effective October 1, 2014
ABS	Asset-backed securities
Alt-A	Alternative-A loan where the documentation is generally limited as compared to fully documented loans (considered a non-prime loan grade)
AOCI	Accumulated other comprehensive income (loss)
Appeals	Internal Revenue Service Office of Appeals
ASR	Accelerated share repurchase
Assured	Assured Guaranty Corp., a subsidiary of Assured Guaranty Ltd.
Available Assets	As defined in the PMIERs, these assets primarily include the liquid assets of a mortgage insurer and its affiliated reinsurers, and exclude unearned premium reserves
BofA Settlement Agreement	The Confidential Settlement Agreement and Release dated September 16, 2014, by and among Radian Guaranty and Countrywide Home Loans, Inc. and Bank of America, N.A., as a successor to BofA Home Loan Servicing f/k/a Countrywide Home Loan Servicing LP, in order to resolve various actual and potential claims or disputes as to mortgage insurance coverage on certain Subject Loans
Claim Curtailment	Our legal right, under certain conditions, to reduce the amount of a claim, including due to servicer negligence
Claim Denial	Our legal right, under certain conditions, to deny a claim
Claim Severity	The total claim amount paid divided by the original coverage amount
Clayton	Clayton Holdings LLC, a Delaware domiciled indirect non-insurance subsidiary of Radian Group
CMBS	Commercial mortgage-backed securities
Convertible Senior Notes due 2017	Our 3.000% convertible unsecured senior notes due November 2017 ($450 million original principal amount)
Convertible Senior Notes due 2019	Our 2.250% convertible unsecured senior notes due March 2019 ($400 million principal amount)
Cures	Loans that were in default as of the beginning of a period and are no longer in default because payments were received and the loan is no longer past due
Default to Claim Rate	Rate at which defaulted loans result in a claim
Deficiency Amount	The assessed tax liabilities, penalties and interest associated with a formal notice of deficiency letter from the IRS
DTAs	Deferred tax assets
DTLs	Deferred tax liabilities
Exchange Act	Securities and Exchange Act of 1934, as amended
Fannie Mae	Federal National Mortgage Association
FHA	Federal Housing Administration
FHFA	Federal Housing Finance Agency
FICO	Fair Isaac Corporation
First-liens	First-lien mortgage loans
Flow Business	With respect to mortgage insurance, transactions in which mortgage insurance is provided on mortgages on an individual loan basis as they are originated. Flow Business contrasts with Structured Transactions, in which mortgage insurance is provided on a group of mortgages after they have been originated

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Term	Definition
Foreclosure Stage Default	The Stage of Default indicating that the foreclosure sale has been scheduled or held
Freddie Mac	Federal Home Loan Mortgage Corporation
Freddie Mac Agreement	The Master Transaction Agreement between Radian Guaranty and Freddie Mac entered into in August 2013
GAAP	Accounting principles generally accepted in the United States of America
Green River Capital	Green River Capital LLC, a wholly-owned subsidiary of Clayton
GSEs	Government-Sponsored Enterprises (Fannie Mae and Freddie Mac)
HPA	Homeowners Protection Act
IBNR	Losses incurred but not reported
IIF	Insurance in force
Implementation Date	The February 1, 2015 commencement date for activities pursuant to the BofA Settlement Agreement
Initial QSR Transaction	Initial quota share reinsurance agreement entered into with a third-party reinsurance provider in the second quarter of 2012
Insureds	Insured parties, with respect to the BofA Settlement Agreement, Countrywide Home Loans, Inc. and Bank of America, N.A., as a successor to BofA Home Loan Servicing f/k/a Countrywide Home Loans Servicing LP
IRS	Internal Revenue Service
LAE	Loss adjustment expense, which includes the cost of investigating and adjusting losses and paying claims
Legacy Portfolio	Mortgage insurance written during the poor underwriting years of 2005 through 2008, together with business written prior to 2005
Loss Mitigation Activity/Activities	Activities such as Rescissions, Claim Denials, Claim Curtailments and cancellations
LTV	Loan-to-value ratio which is calculated as the percentage of the original loan amount to the original value of the property
Master Policies	The Prior Master Policy and the 2014 Master Policy, collectively
Minimum Required Assets	A risk-based minimum required asset amount, as defined in the PMIERs, calculated based on net RIF and a variety of measures designed to evaluate credit quality
Model Act	Mortgage Guaranty Insurers Model Act
Monthly Premium Policy/Policies	Insurance policies where premiums are paid on a monthly installment basis
Moody’s	Moody’s Investors Service
Mortgage Insurance	Radian’s Mortgage Insurance business segment, which provides credit-related insurance coverage, principally through private mortgage insurance, to mortgage lending institutions
MPP Requirement	Certain states’ statutory or regulatory risk-based capital requirement that the mortgage insurer must maintain a minimum policyholder position, which is calculated based on both risk and surplus levels
NAIC	National Association of Insurance Commissioners
NIW	New insurance written
NOL	Net operating loss, calculated on a tax basis
Notices of Deficiency	Formal letters from the IRS informing the taxpayer of an IRS determination of tax deficiency and appeal rights
OCI	Other comprehensive income (loss)
PDR	Premium deficiency reserve
Persistency Rate	The percentage of insurance in force that remains on our books after any 12-month period

4

Term	Definition
PMIERs	Private Mortgage Insurer Eligibility Requirements that were issued by the FHFA in proposed form for public comment on July 10, 2014 and issued in final form on April 17, 2015, as updated on June 30, 2015
PMIERs Financial Requirements	Financial requirements of the PMIERs
Prior Master Policy	Radian Guaranty’s master insurance policy in effect prior to the effective date of its 2014 Master Policy
QSR	Quota share reinsurance
QSR Transactions	The Initial QSR Transaction and Second QSR Transaction, collectively
Radian	Radian Group Inc. together with its consolidated subsidiaries
Radian Asset Assurance	Radian Asset Assurance Inc., a New York domiciled insurance subsidiary of Radian Guaranty
Radian Asset Assurance Stock Purchase Agreement	The Stock Purchase Agreement dated December 22, 2014, between Radian Guaranty and Assured Guaranty Corp., a subsidiary of Assured Guaranty Ltd. (“Assured”), to sell 100% of the issued and outstanding shares of Radian Asset Assurance, Radian’s financial guaranty insurance subsidiary, to Assured
Radian Group	Radian Group Inc., the registrant
Radian Guaranty	Radian Guaranty Inc., a Pennsylvania domiciled insurance subsidiary of Radian Group
RBC States	Risk-based capital states, which are those states that currently impose a statutory or regulatory risk-based capital requirement
Red Bell	Red Bell Real Estate, LLC, a wholly-owned subsidiary of Clayton
Reinstatements	Reversals of previous rescissions, claim denials and claim curtailments
REMIC	Real Estate Mortgage Investment Conduit
REO	Real estate owned
Rescission	Our legal right, under certain conditions, to unilaterally rescind coverage on our mortgage insurance policies if we determine that a loan did not qualify for insurance
RESPA	Real Estate Settlement Procedures Act of 1974
RGRI	Radian Guaranty Reinsurance Inc., a Pennsylvania domiciled insurance subsidiary of Enhance Financial Services Group Inc., a New York domiciled non-insurance subsidiary of Radian Group
RIF	Risk in force, which approximates the maximum loss exposure at any point in time
Risk-to-capital	Under certain state regulations, a minimum ratio of statutory capital calculated relative to the level of net risk in force
RMBS	Residential mortgage-backed securities
S&P	Standard & Poor’s Financial Services LLC
SAP	Statutory accounting practices include those required or permitted, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries
SEC	United States Securities and Exchange Commission
Second QSR Transaction	Second Quota share reinsurance transaction entered into with a third-party reinsurance provider in the fourth quarter of 2012
Second-liens	Second-lien mortgage loans
Senior Notes due 2017	Our 9.000% unsecured senior notes due June 2017 ($195.5 million principal amount)
Senior Notes due 2019	Our 5.500% unsecured senior notes due June 2019 ($300 million principal amount)
Senior Notes due 2020	Our 5.250% unsecured senior notes due June 2020 ($350 million principal amount)
Services	Radian’s Mortgage and Real Estate Services business segment, which provides mortgage- and real estate-related products and services to the mortgage finance market
Servicing Only Loans	With respect to the BofA Settlement Agreement, loans other than Legacy Loans that were or are serviced by the Insureds and were 90 days or more past due as of July 31, 2014, or if servicing has been transferred to a servicer other than the Insureds, 90 days or more past due as of the transfer date

5

Term	Definition
Single Premium Policy/Policies	Insurance policies where premiums are paid as a single payment at origination
Stage of Default	The stage a loan is in relative to the foreclosure process, based on whether or not a foreclosure sale has been scheduled or held
Statutory RBC Requirement	Risk-based capital requirement imposed by the RBC States, requiring a minimum surplus level and, in certain states, a minimum ratio of statutory capital relative to the level of risk
Structured Transactions	With respect to mortgage insurance, transactions in which mortgage insurance is provided on a group of mortgages after they have been originated. Structured Transactions contrast with Flow Business, in which mortgage insurance is provided on mortgages on an individual loan basis as they are originated
Subject Loans	Loans covered under the BofA Settlement Agreement, comprising Legacy Loans and Servicing Only Loans
The White Case	A putative class action under RESPA titled White v. PNC Financial Services Group filed in the U.S. District Court for the Eastern District of Pennsylvania
The Menichino Case	A putative class action under RESPA titled Menichino, et al. v. Citibank, N.A., et al. filed in the U.S. District Court for the Western District of Pennsylvania
The Manners Case	A putative class action under RESPA titled Manners, et al. v. Fifth Third Bank, et al. filed in the U.S. District Court for the Western District of Pennsylvania
Time in Default	The time period from the point a loan reaches default status (based on the month the default occurred) to the current reporting date
U.S.	The United States of America
U.S. Treasury	United States Department of the Treasury
VIE	Variable interest entity is a legal entity subject to the variable interest entity subsections of the accounting standard regarding consolidation, and generally includes a corporation, trust or partnership in which, by design, equity investors do not have a controlling financial interest or do not have sufficient equity at risk to finance activities without additional subordinated financial support

6

Cautionary Note Regarding Forward Looking Statements—Safe Harbor Provisions

All statements in this report that address events, developments or results that we expect or anticipate may occur in the future are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act and the U.S. Private Securities Litigation Reform Act of 1995. In most cases, forward-looking statements may be identified by words such as “anticipate,” “may,” “will,” “could,” “should,” “would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “seek,” “strategy,” “future,” “likely” or the negative or other variations on these words and other similar expressions. These statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. The forward-looking statements, as well as our prospects as a whole, are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including:

• changes in general economic and political conditions, including unemployment rates, changes in the U.S. housing and mortgage credit markets, declines in home prices and property values, the performance of the U.S. or global economies, the amount of liquidity in the capital or credit markets, changes or volatility in interest rates or consumer confidence and changes in credit spreads, all of which may be impacted by, among other things, legislative activity or inactivity, actual or threatened downgrades of U.S. government credit ratings, or actual or threatened defaults on U.S. government obligations;

• changes in the way customers, investors, regulators or legislators perceive the strength of private mortgage insurers;

• catastrophic events, increased unemployment, home price depreciation or other negative economic changes generally or in geographic regions where our mortgage insurance exposure is more concentrated;

• Radian Guaranty’s ability to remain eligible under applicable requirements imposed by the FHFA and by the GSEs to insure loans purchased by the GSEs;

• our ability to maintain sufficient holding company liquidity to meet our short- and long-term liquidity needs. We expect to contribute a portion of our holding company liquidity to support Radian Guaranty’s compliance with the PMIERs Financial Requirements which become effective for existing mortgage insurers on December 31, 2015. Our projections regarding the amount of holding company liquidity that we may contribute to Radian Guaranty to comply with the PMIERs Financial Requirements are based on our estimates of Radian Guaranty’s Minimum Required Assets and Available Assets, which may not prove to be accurate, and which could be impacted by: (1) our ability to receive, as currently expected, GSE approval for the amendments to our existing reinsurance arrangements and receive the full PMIERs benefit for these arrangements; (2) whether we elect to convert certain liquid assets into PMIERs-compliant Available Assets; (3) the product mix of our NIW and factors affecting the performance of our mortgage insurance business, including our level of defaults, prepayments, the losses we incur on new or existing defaults and the credit characteristics of our mortgage insurance; and (4) how much capital we expect to maintain at our mortgage insurance subsidiaries in excess of the amount required to satisfy the PMIERs Financial Requirements. Contributions of holding company cash and investments from Radian Group will leave less liquidity to satisfy Radian Group’s future obligations. Depending on the amount of holding company contributions that we make, we may be required or may decide to seek additional capital by incurring additional debt, by issuing additional equity, or by selling assets, which we may not be able to do on favorable terms, if at all;

• our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy existing and future state regulatory requirements, including new capital adequacy standards that currently are being developed by the NAIC and that could be adopted by states in which we write business;

7

• changes in the charters or business practices of, or rules or regulations imposed by or applicable to the GSEs, including: (1) the implementation of the final PMIERs (as updated on June 30, 2015) which will (a) increase the amount of capital that Radian Guaranty is required to hold, and therefore, reduce our current returns on subsidiary capital, (b) potentially impact the type of business that Radian Guaranty is willing to write, which could reduce our NIW and market share, (c) impose extensive and more stringent operational requirements in areas such as claim processing, loss mitigation, document retention, underwriting, quality control, reporting and monitoring, among others, that may result in additional costs to achieve and maintain compliance, and (d) require the consent of the GSEs for Radian Guaranty to take certain actions such as paying dividends, entering into various inter-company agreements, and commuting or reinsuring risk, among others; (2) changes that could limit the type of business that Radian Guaranty and other private mortgage insurers are willing to write or that could impact the process for selecting a mortgage insurance provider, which could reduce our NIW and market share; (3) changes that could increase the cost of private mortgage insurance, including as compared to the FHA pricing, or result in the emergence of other forms of credit enhancement; and (4) changes that could require us to alter our business practices and which may result in substantial additional costs;

• our ability to continue to effectively mitigate our mortgage insurance losses, including a decrease in net Rescissions, Claim Denials or Claim Curtailments resulting from an increase in the number of successful challenges to previous Rescissions, Claim Denials or Claim Curtailments (including as part of one or more settlements of disputed Rescissions or Claim Denials), or as a result of the GSEs intervening in or otherwise limiting our loss mitigation practices, including settlements of disputes regarding Loss Mitigation Activities;

• the negative impact that our Loss Mitigation Activities may have on our relationships with our customers and potential customers, including the potential loss of current or future business and the heightened risk of disputes and litigation;

• any disruption in the servicing of mortgages covered by our insurance policies, as well as poor servicer performance;

• a substantial decrease in the persistency rates of our mortgage insurance policies, which has the effect of reducing our premium income from our Monthly Premium Policies and could decrease the profitability of our mortgage insurance business;

• heightened competition for our mortgage insurance business from others such as the FHA, the U.S. Department of Veterans Affairs and other private mortgage insurers (including with respect to other private mortgage insurers, those that have been assigned higher ratings than we have, that may have access to greater amounts of capital than we do, or that are new entrants to the industry, and therefore, are not burdened by legacy obligations) and the impact such heightened competition may have on our returns and our NIW;

• the increased utilization of customized (reduced) rates on lender-paid, single premium mortgage insurance products and potentially other mortgage insurance products, which could further reduce our overall average premium rates and returns and, to the extent we decide to limit this type of business, could adversely impact our market share and our customer relationships;

• changes to the current system of housing finance, including the possibility of a new system in which private mortgage insurers are not required or their products are significantly limited in effect or scope;

• the effect of the Dodd-Frank Wall Street Reform and Consumer Protection Act on the financial services industry in general, and on our businesses in particular;

• the adoption of new or application of existing federal or state laws and regulations, or changes in these laws and regulations or the way they are interpreted, including, without limitation: (1) the resolution of existing, or the possibility of additional, lawsuits, inquiries or investigations (including a recent inquiry from the Wisconsin Office of the Commissioner of Insurance to all private mortgage insurers pertaining to customized insurance rates and terms offered to mortgage insurance customers); (2) changes to the Model Act being considered by the NAIC that could include more stringent capital and other requirements for Radian Guaranty in states that adopt the new Model Act in the future; and (3) legislative and regulatory changes (a) impacting the demand for our products, (b) limiting or restricting the products we may offer or increasing the amount of capital we are required to hold, (c) affecting the form in which we execute credit protection, or (d) otherwise impacting our existing businesses or future prospects;

• the amount and timing of potential payments or adjustments associated with federal or other tax examinations, including deficiencies assessed by the IRS resulting from the examination of our 2000 through 2007 tax years, which we are currently contesting;

8

• the possibility that we may fail to estimate accurately the likelihood, magnitude and timing of losses in connection with establishing loss reserves for our mortgage insurance business;

• volatility in our results of operations caused by changes in the fair value of our assets and liabilities, including a significant portion of our investment portfolio;

• changes in GAAP or SAP, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries rules and guidance, or their interpretation;

• legal and other limitations on amounts we may receive from our subsidiaries as dividends or through our tax- and expense-sharing arrangements with our subsidiaries; and

• the possibility that we may need to impair the estimated fair value of goodwill established in connection with our acquisition of Clayton, the valuation of which requires the use of significant estimates and assumptions with respect to the estimated future economic benefits arising from certain assets acquired in the transaction such as the value of expected future cash flows of Clayton, Clayton’s workforce, expected synergies with our other affiliates and other unidentifiable intangible assets.

For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 1A of our 2014 Form 10-K, and in our subsequent quarterly and other reports, including Item 1A of Part II of this Quarterly Report on Form 10-Q, filed from time to time with the SEC. We caution you not to place undue reliance on these forward-looking statements, which are current only as of the date on which we issued this report. We do not intend to, and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future events or for any other reason.

9

PART I—FINANCIAL INFORMATION

Radian Group Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30, 2015			December 31, 2014
($ in thousands, except share amounts)
ASSETS
Investments (Note 5)
Fixed-maturities available for sale—at fair value (amortized cost $1,196,446 and $528,660)	$	1,178,842		$	536,890
Equity securities available for sale—at fair value (cost $573 and $76,900)	881			143,368
Trading securities—at fair value	1,466,435			1,633,584
Short-term investments—at fair value	1,649,370			1,300,872
Other invested assets	13,620			14,585
Total investments	4,309,148			3,629,299
Cash	51,381			30,465
Restricted cash	12,633			14,031
Accounts and notes receivable	72,093			85,792
Deferred income taxes, net (Note 12)	651,238			700,201
Goodwill and other intangible assets, net (Note 6)	290,640			288,240
Other assets (Note 8)	349,371			357,864
Assets held for sale (Note 2)	—			1,736,444
Total assets	$	5,736,504		$	6,842,336
LIABILITIES AND STOCKHOLDERS’ EQUITY
Unearned premiums	$	665,947		$	644,504
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)	1,204,792			1,560,032
Long-term debt (Note 10)	1,224,892			1,192,299
Other liabilities	278,929			326,743
Liabilities held for sale (Note 2)	—			947,008
Total liabilities	3,374,560			4,670,586
Commitments and Contingencies (Note 15)
Equity component of currently redeemable convertible senior notes (Note 10)	8,546			74,690
Stockholders’ equity
Common stock: par value $.001 per share; 485,000,000 shares authorized at June 30, 2015 and December 31, 2014, respectively; 226,147,213 and 208,601,020 shares issued at June 30, 2015 and December 31, 2014, respectively; 208,586,516 and 191,053,530 shares outstanding at June 30, 2015 and December 31, 2014, respectively	226			209
Treasury stock, at cost: 17,560,597 and 17,547,490 shares at June 30, 2015 and December 31, 2014, respectively	(893,176		)	(892,961		)
Additional paid-in capital	2,709,721			2,531,513
Retained earnings	548,161			406,814
Accumulated other comprehensive (loss) income (“AOCI”) (Note 11)	(11,534		)	51,485
Total stockholders’ equity	2,353,398			2,097,060
Total liabilities and stockholders’ equity	$	5,736,504		$	6,842,336

See Notes to Unaudited Condensed Consolidated Financial Statements.

10

Radian Group Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended June 30,					Six Months Ended June 30,
($ in thousands, except per share amounts)	2015		2014			2015		2014
Revenues:
Net premiums earned—insurance	$	237,437	$	203,646		$	462,032	$	402,408
Services revenue	43,503		—			74,133		—
Net investment income	19,285		16,663			36,613		31,981
Net gains on investments and other financial instruments	28,448		25,332			45,227		68,300
Other income	1,743		1,739			3,074		2,865
Total revenues	330,416		247,380			621,079		505,554
Expenses:
Provision for losses	32,560		64,648			77,588		114,274
Policy acquisition costs	6,963		6,746			14,713		13,763
Direct cost of services	23,520		—			42,773		—
Other operating expenses	67,731		60,751			121,505		115,258
Interest expense	24,501		22,348			48,886		42,275
Loss on induced conversion and debt extinguishment (Note 10)	91,876		—			91,876		—
Amortization and impairment of intangible assets	3,281		—			6,304		—
Total expenses	250,432		154,493			403,645		285,570
Pretax income from continuing operations	79,984		92,887			217,434		219,984
Income tax provision (benefit)	34,791		(10,650		)	80,514		(29,533		)
Net income from continuing operations	45,193		103,537			136,920		249,517
Income from discontinued operations, net of tax	4,855		71,296			5,385		128,075
Net income	$	50,048	$	174,833		$	142,305	$	377,592
Net income per share:
Basic:
Net income from continuing operations	$	0.23	$	0.57		$	0.71	$	1.40
Income from discontinued operations	0.03		0.39			0.03		0.72
Net income	$	0.26	$	0.96		$	0.74	$	2.12
Diluted:
Net income from continuing operations	$	0.20	$	0.47		$	0.59	$	1.15
Income from discontinued operations	0.02		0.31			0.02		0.56
Net income	$	0.22	$	0.78		$	0.61	$	1.71
Weighted-average number of common shares outstanding—basic	193,112		182,583			192,245		177,903
Weighted-average number of common and common equivalent shares outstanding—diluted	246,650		230,779			244,981		226,767
Dividends per share	$	0.0025	$	0.0025		$	0.0050	$	0.0050

See Notes to Unaudited Condensed Consolidated Financial Statements.

11

Radian Group Inc.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Net income	$	50,048		$	174,833		$	142,305		$	377,592
Other comprehensive (loss) income, net of tax (Note 11):
Net foreign currency translation adjustments	158			—			32			—
Unrealized (losses) gains on investments:
Unrealized holding (losses) gains arising during the period	(21,620		)	8,633			(15,166		)	11,302
Less: Reclassification adjustment for net gains (losses) included in net income	44,664			(393		)	44,631			(389		)
Net unrealized (losses) gains on investments	(66,284		)	9,026			(59,797		)	11,691
Activity related to investments recorded as assets held for sale	(5,082		)	647			(3,254		)	1,943
Other comprehensive (loss) income, net of tax	(71,208		)	9,673			(63,019		)	13,634
Comprehensive (loss) income	$	(21,160	)	$	184,506		$	79,286		$	391,226

See Notes to Unaudited Condensed Consolidated Financial Statements.

12

Radian Group Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON STOCKHOLDERS’ EQUITY (UNAUDITED)

(In thousands)	Common Stock			Treasury Stock			Additional Paid-in Capital			Retained  (Deficit) Earnings			AOCI			Total
BALANCE, JANUARY 1, 2014	$	191		$	(892,807	)	$	2,347,104		$	(552,226	)	$	37,383		$	939,645
Net income	—			—			—			377,592			—			377,592
Net unrealized gain on investments, net of tax	—			—			—			—			13,634			13,634
Repurchases of common stock under incentive plans	—			(154		)	—			—			—			(154		)
Issuance of common stock - stock offering	18			—			247,370			—			—			247,388
Issuance of common stock under benefit plans	—			—			487			—			—			487
Issuance of common stock under incentive plans	—			—			175			—			—			175
Stock-based compensation expense, net	—			—			6,390			—			—			6,390
Dividends declared	—			—			(910		)	—			—			(910		)
BALANCE, JUNE 30, 2014	$	209		$	(892,961	)	$	2,600,616		$	(174,634	)	$	51,017		$	1,584,247
BALANCE, JANUARY 1, 2015	$	209		$	(892,961	)	$	2,531,513		$	406,814		$	51,485		$	2,097,060
Net income	—			—			—			142,305			—			142,305
Net foreign currency translation adjustment, net of tax	—			—			—			—			32			32
Net unrealized loss on investments, net of tax	—			—			—			—			(63,051		)	(63,051		)
Repurchases of common stock under incentive plans	—			(215		)	—			—			—			(215		)
Issuance of common stock under benefit plans	—			—			482			—			—			482
Issuance of common stock under incentive plans	1			—			1,112			—			—			1,113
Stock-based compensation expense, net	—			—			6,494			—			—			6,494
Impact of extinguishment of Convertible Senior Notes due 2017 (Note 10)	28			—			349,033			—			—			349,061
Shares repurchased under ASR (Note 16)	(9		)	—			(201,991		)	—			—			(202,000		)
Termination of capped calls (Note 10)	(3		)	—			11,976			—			—			11,973
Change in equity component of currently redeemable convertible senior notes	—			—			11,102			—			—			11,102
Dividends declared	—			—			—			(958		)	—			(958		)
BALANCE, JUNE 30, 2015	$	226		$	(893,176	)	$	2,709,721		$	548,161		$	(11,534	)	$	2,353,398

See Notes to Unaudited Condensed Consolidated Financial Statements.

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Radian Group Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)	Six Months Ended June 30,
	2015			2014
Cash flows from operating activities:
Net cash used in operating activities, continuing operations	$	(66,804	)	$	(236,753	)
Net cash used in operating activities, discontinued operations	(1,759		)	(23,107		)
Net cash used in operating activities	(68,563		)	(259,860		)
Cash flows from investing activities:
Proceeds from sales of fixed-maturity investments available for sale	57,309			9,802
Proceeds from sales of equity securities available for sale	145,550			—
Proceeds from sales and redemptions of trading securities	134,427			432,248
Proceeds from redemptions of fixed-maturity investments available for sale	25,179			100
Proceeds from redemptions of fixed-maturity investments held to maturity	—			300
Purchases of fixed-maturity investments available for sale	(725,640		)	(165,256		)
Purchases of equity securities available for sale	(500		)	—
Purchases and redemptions of short-term investments, net	(348,702		)	(197,299		)
Sales of other assets, net	965			6,750
Proceeds from the sale of investment in affiliate, net of cash transferred	784,866			—
Purchases of property and equipment, net	(10,654		)	(8,041		)
Acquisitions, net of cash acquired	(6,449		)	(295,977		)
Net cash provided by (used in) investing activities, continuing operations	56,351			(217,373		)
Net cash provided by investing activities, discontinued operations	4,999			14,740
Net cash provided by (used in) investing activities	61,350			(202,633		)
Cash flows from financing activities:
Dividends paid	(958		)	(910		)
Issuance of long-term debt, net	344,260			294,402
Purchases and redemptions of long-term debt	(128,303		)	(57,223		)
Proceeds from termination of capped calls	11,973			—
Issuance of common stock	—			247,388
Purchase of shares under ASR	(202,000		)	—
Excess tax benefits from stock-based awards	2,679			106
Net cash provided by financing activities, continuing operations	27,651			483,763
Net cash provided by (used in) financing activities, discontinued operations	—			—
Net cash provided by financing activities	27,651			483,763
Effect of exchange rate changes on cash	57			(13		)
Increase in cash	20,495			21,257
Cash, beginning of period	30,465			22,880
Less: Change in cash of business held for sale	(421		)	1,758
Cash, end of period	$	51,381		$	42,379
Supplemental disclosures of cash flow information:
Income taxes paid	$	3,786		$	5,333
Interest paid	$	29,547		$	21,558

See Notes to Unaudited Condensed Consolidated Financial Statements.

14

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

1. Condensed Consolidated Financial Statements—Significant Accounting Policies and Business Overview

Significant Accounting Policies

Basis of Presentation

Our condensed consolidated financial statements include the accounts of Radian Group Inc. and its subsidiaries. We refer to Radian Group Inc. together with its consolidated subsidiaries as “Radian,” the “Company,” “we,” “us” or “our,” unless the context requires otherwise. We generally refer to Radian Group Inc. alone, without its consolidated subsidiaries, as “Radian Group.” Unless otherwise defined in this report, certain terms and acronyms used throughout this report are defined in the Glossary of Abbreviations and Acronyms included as part of this report.

Our condensed consolidated financial statements are prepared in accordance with GAAP and include the accounts of all wholly-owned subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP pursuant to the instructions set forth in Article 10 of Regulation S-X of the SEC.

The financial information presented for interim periods is unaudited; however, such information reflects all adjustments that are, in the opinion of management, necessary for the fair statement of the financial position, results of operations, comprehensive income and cash flows for the interim periods presented. Such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. These interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in our 2014 Form 10-K. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or for any other period. Certain prior period amounts have been reclassified to conform to current period presentation, including the adoption of an update to the accounting standard for the presentation of debt issuance costs in financial statements, as further described below in Recent Accounting Pronouncements.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our condensed consolidated financial statements include our best estimates and assumptions, actual results may vary materially.

Other Significant Accounting Policies

During the second quarter of 2015, Radian Group completed a series of transactions for the purpose of strengthening its capital position, including to reduce its overall cost of capital and improve the maturity profile of its debt. See Recent Developments—Debt and Equity Transactionsin this Note 1 for more information.

June 2015 Purchases of Convertible Debt Prior to Maturity. We accounted for the June 2015 purchases of a portion of our outstanding convertible debt in exchange for cash and shares of Radian Group common stock as an induced conversion of convertible debt in accordance with the accounting standard regarding derecognition of debt with conversion and other options, and the accounting standard regarding debt modifications and extinguishments. The accounting standards require the recognition through earnings of an inducement charge equal to the fair value of the consideration delivered in excess of the consideration issuable under the original conversion terms. The remaining consideration delivered and transaction costs incurred are required to be allocated between the extinguishment of the liability component and the reacquisition of the equity component. Therefore, we recognized as a loss on induced conversion and debt extinguishment the sum of: (i) the inducement charge; (ii) the difference between the fair value and the carrying value of the liability component of the purchased debt; (iii) transaction costs allocated to the debt component; and (iv) unamortized debt issuance costs related to the purchased debt.

15

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

Accelerated Share Repurchase. Our ASR program consists of the combination of the purchase of Radian Group common stock from an investment bank and a forward contract with that investment bank indexed to Radian Group common stock. We account for the ASR program in accordance with the provisions of the accounting standards regarding derivatives and hedging for contracts indexed to an entity’s own stock, and the accounting standard regarding equity. The up-front payment to the investment bank as part of the ASR program is accounted for as a reduction to stockholders’ equity in our consolidated balance sheets in the period the payment was made. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares in the periods delivered. We reflect the ASR program as a repurchase of common stock in the periods delivered for purposes of calculating earnings per share and as forward contracts indexed to the company’s own common stock. The ASR program met all of the applicable criteria for equity classification, and therefore, was not accounted for as a derivative instrument.

See Note 2 in our 2014 Form 10-K for information regarding other significant accounting policies.

Recent Accounting Pronouncements

In May 2014, the FASB issued an update to the accounting standard regarding revenue recognition. This update is intended to provide a consistent approach in recognizing revenue. In accordance with the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. While this update is not expected to change revenue recognition principles related to our insurance products, this update may be applicable to revenues from our Services segment, which has been included in our condensed consolidated statements of operations beginning with the third quarter of 2014. In July 2015, the FASB delayed the effective date for this updated standard to interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update, if any.

In April 2015, the FASB issued an update to the accounting standard for the presentation of debt issuance costs in financial statements. The new standard requires an entity to present debt issuance costs related to a recognized debt liability as a direct reduction from the carrying amount of the related debt liability, consistent with debt discounts, rather than as a separate asset as currently required. The recognition and measurement guidance for debt issuance costs are not affected by the update. The provisions of this update are effective for interim and annual periods beginning after December 15, 2015, and must be applied on a retrospective basis for all periods presented. We early adopted this update effective June 30, 2015, as permitted for financial statements that have not been previously issued. The implementation of this update resulted in a reclassification of approximately $17.6 million of remaining debt issuance costs on our December 31, 2014 consolidated balance sheet, from other assets, to be presented as a reduction of the related debt liability. This update has also been applied retrospectively to prior periods presented. See Note 10 for additional information on the impact of the reclassification.

In April 2015, the FASB issued an update to the accounting standard for the accounting of internal-use software. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The provisions of this update are effective for interim and annual periods beginning after December 15, 2015, and early adoption is permitted. Management is currently evaluating the potential impact to our financial statements, if any.

In May 2015, the FASB issued an update to the accounting standard for the accounting of short-duration insurance contracts by insurance entities. The amendments in this update require insurance entities to disclose certain information about the liability for unpaid claims and claim adjustment expenses. The additional information required is focused on improvements in disclosures regarding insurance liabilities, including the timing, nature and uncertainty of future cash flows related to insurance liabilities and the effect of those cash flows on the statement of comprehensive income. The disclosures required by this update are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016; early adoption is permitted. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update.

16

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

Business Overview

We provide mortgage and real estate products and services and have two reportable business segments—Mortgage Insurance and Services. On April 1, 2015, Radian Guaranty completed the previously disclosed sale to Assured of 100% of the issued and outstanding shares of Radian Asset Assurance, a financial guaranty insurer, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. As a result, until the April 1, 2015 sale date, the operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. Prior periods have been revised to conform to the current period presentation for these changes. See Note 2 for additional information related to discontinued operations.

Mortgage Insurance

Our Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance, to mortgage lending institutions. We provide our mortgage insurance products mainly through our wholly-owned subsidiary, Radian Guaranty. Private mortgage insurance protects mortgage lenders from all or a portion of default-related losses on residential mortgage loans made to home buyers who generally make down payments of less than 20% of the home’s purchase price. Private mortgage insurance also facilitates the sale of these low-downpayment mortgage loans in the secondary mortgage market, most of which are sold to the GSEs. Our Mortgage Insurance segment currently offers primary mortgage insurance coverage on residential First-liens, and at June 30, 2015, primary insurance on First-liens comprised approximately 97.4% of our $44.8 billion total direct RIF. At June 30, 2015, pool insurance, which we previously offered, represented approximately 2.5% of our total direct RIF.

The FHFA, the GSEs and state insurance regulators impose various capital and financial requirements on our insurance subsidiaries. These include financial requirements, such as Risk-to-capital, other risk-based capital measures and surplus requirements, as well as the PMIERs Financial Requirements discussed below. Failure to comply with applicable financial requirements may limit the amount of insurance that our insurance subsidiaries may write. The GSEs and our state insurance regulators also possess significant discretion with respect to our insurance subsidiaries.

On April 17, 2015, the FHFA issued the final PMIERs, setting forth revised requirements for private mortgage insurers, including Radian Guaranty, to remain eligible insurers of loans purchased by the GSEs. On June 30, 2015, the GSEs updated the PMIERs Financial Requirements to increase the amount of Available Assets that must be held by a private mortgage insurer for loans originated on or after January 1, 2016 that are insured under lender-paid mortgage insurance policies not subject to automatic termination under the HPA. Once the PMIERs become effective for existing eligible mortgage insurers on December 31, 2015, the PMIERs Financial Requirements will replace the capital adequacy standards under the current GSE eligibility requirements.

The PMIERs Financial Requirements require a mortgage insurer’s Available Assets to meet or exceed its Minimum Required Assets. Under the final PMIERs, Radian Guaranty’s Available Assets and Minimum Required Assets are determined on an aggregate basis, taking into account the assets and insured risk of Radian Guaranty and its affiliated reinsurers. Therefore, developments that impact the assets and insured risk of Radian Guaranty and its affiliated reinsurers individually (such as capital contributions from Radian Group) also will impact the aggregate Available Assets and Minimum Required Assets, and importantly, Radian Guaranty’s compliance with the PMIERs Financial Requirements. As a result, references to Radian Guaranty’s Available Assets and Minimum Required Assets take into consideration both Radian Guaranty and its affiliated reinsurers.

Based on our current estimates of Radian Guaranty’s Available Assets and Minimum Required Assets as of June 30, 2015, we expect that Radian Guaranty will have the ability to immediately comply with the PMIERs Financial Requirements through one or more future contributions of a portion of our holding company liquidity to Radian Guaranty and its affiliated reinsurers.

The implementation of the final PMIERs (as updated on June 30, 2015) will: (1) increase the amount of capital that Radian Guaranty is required to hold, and therefore, reduce our current returns on subsidiary capital; (2) potentially impact the type of business that Radian Guaranty is willing to write; (3) impose extensive and more stringent operational requirements in areas such as claim processing, loss mitigation, document retention, underwriting, quality control, reporting and monitoring, among others, that may result in additional costs to achieve and maintain compliance; and (4) require the consent of the GSEs for Radian Guaranty to take certain actions such as paying dividends, entering into various intercompany agreements, and commuting or reinsuring risk, among others.

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Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The NAIC is in the process of reviewing the minimum capital and surplus requirements for mortgage insurers and is considering changes to the Model Act. While the outcome of this process is not known, it is possible that among other changes, the NAIC will recommend and adopt more stringent capital requirements than currently exist under the Model Act, which could increase the capital requirements for Radian Guaranty in states that adopt the new Model Act.

Services

Our Services segment provides outsourced services, information-based analytics and specialty consulting for buyers and sellers of, and investors in, mortgage loans and other real estate-related loans and securities as well as other forms of collateral. The primary services of our Services segment include: (1) loan review/due diligence; (2) surveillance; (3) valuation and component services; (4) REO management; and (5) EuroRisk mortgage services in the United Kingdom and Europe. These services and solutions are provided primarily through Clayton and its subsidiaries, including Green River Capital and Red Bell.

During the first quarter of 2015, Clayton further expanded its service offerings by acquiring Red Bell, a real estate brokerage company that provides products and services that include automated valuation models; broker price opinions used by investors, lenders and loan servicers; and advanced technology solutions for: (1) monitoring loan portfolio performance; (2) tracking non-performing loans; (3) managing REO assets; and (4) valuing and selling residential real estate through a secure platform. Red Bell is part of the Services segment. See Note 6 for additional information.

Recent Developments

Debt and Equity Transactions

During the second quarter of 2015, Radian Group successfully completed a series of transactions for the purpose of strengthening its capital position, including to reduce its overall cost of capital and improve the maturity profile of its debt. This series of transactions had four components:

• the issuance of $350 million aggregate principal amount of Senior Notes due 2020;

• the purchases of approximately $389.1 million aggregate principal amount of Convertible Senior Notes due 2017;

• the termination of a corresponding portion of the capped call transactions related to the purchased Convertible Senior Notes due 2017; and

• the entry into an ASR program to repurchase an aggregate of $202 million of Radian Group common stock.

The purchases of the Convertible Senior Notes due 2017 resulted in a pretax charge of approximately $91.9 million in the second quarter of 2015, recorded as loss on induced conversion and debt extinguishment.

See Notes 10 and 16 for additional information.

BofA Settlement Agreement

Implementation of the BofA Settlement Agreement commenced on February 1, 2015 for Subject Loans held in portfolio by the Insureds or purchased by the GSEs as of that date. Approximately 12% of the Subject Loans are neither held in portfolio by the Insureds nor owned by the GSEs, and require the consent of certain other investors for these loans to be included in the BofA Settlement Agreement, except with respect to certain limited rights of cancellation. The deadline for such consent has been extended to August 15, 2015. See Note 10 of Notes to Consolidated Financial Statements in our 2014 Form 10-K for additional information about the BofA Settlement Agreement.

2. Discontinued Operations

On April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance for a purchase price of approximately $810 million, pursuant to the Radian Asset Assurance Stock Purchase Agreement. The divestiture was intended to better position Radian Guaranty to comply with the PMIERs and to support Radian’s strategic focus on the mortgage and real estate industries. After closing costs and other adjustments, Radian Guaranty received net proceeds of $789 million. See Note 1 for additional information regarding the PMIERs.

Previously, Radian Asset Assurance comprised substantially all of the financial guaranty segment. Radian Asset Assurance provided direct insurance and reinsurance on credit-based risks. As a result, the assets and liabilities associated with the discontinued operations historically were a source of significant volatility to Radian’s results of operations, due to various factors including fluctuations in fair value and credit risk.

18

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

Based upon the applicable terms of the Radian Asset Assurance Stock Purchase Agreement, we determined that Radian Asset Assurance met the criteria for held for sale and discontinued operations accounting at December 31, 2014. As a result, we recognized a pretax impairment charge of approximately $468 million for the year ended December 31, 2014 and an additional charge of $14.3 million for the six months ended June 30, 2015. The operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. We recorded net income from discontinued operations of $5.4 million related to this sale in the first six months of 2015, consisting primarily of the recognition of investment gains previously deferred and recorded in accumulated other comprehensive income and recognized as a result of the completion of the sale of Radian Asset Assurance to Assured on April 1, 2015, and adjustments to estimated transaction costs and taxes. No general corporate overhead or interest expense was allocated to discontinued operations.

In the tables below we have summarized the major components of the net income from discontinued operations, as well as the assets and liabilities held for sale.

The income from discontinued operations, net of tax, consisted of the following components for the periods indicated:

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015			2014		2015			2014
Net premiums earned	$	—		$	10,468	$	1,007		$	17,371
Net investment income	—			9,074		9,153			17,985
Net gains on investments and other financial instruments	7,818			19,978		21,486			42,159
Change in fair value of derivative instruments	—			57,477		2,625			107,563
Other income	—			78		—			79
Total revenues	7,818			97,075		34,271			185,157
Provision for losses	—			5,078		502			10,727
Policy acquisition costs	—			1,675		(191		)	3,272
Other operating expense	—			4,800		4,107			10,202
Total expenses	—			11,553		4,418			24,201
Equity in net loss of affiliates	—			—		(13		)	(13		)
Income from operations of businesses held for sale	7,818			85,522		29,840			160,943
Loss on sale	(350		)	—		(14,280		)	—
Income tax provision	2,613			14,226		10,175			32,868
Income from discontinued operations, net of tax	$	4,855		$	71,296	$	5,385		$	128,075

19

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The assets and liabilities associated with the discontinued operations have been segregated in the condensed consolidated balance sheets for periods prior to the sale. The following table summarizes the major components of Radian Asset Assurance’s assets and liabilities held for sale on the condensed consolidated balance sheets as of the date indicated:

(In thousands)	December 31, 2014
Fixed-maturity investments	$	224,552
Equity securities	3,749
Trading securities	689,887
Short-term investments	435,413
Other invested assets	108,206
Other assets	274,637
Total assets held for sale	$	1,736,444
Unearned premiums	$	158,921
Reserve for losses and LAE	31,558
VIE debt	85,016
Derivative liabilities	183,370
Other liabilities	488,143
Total liabilities held for sale	$	947,008

3. Segment Reporting

We currently have two strategic business units that we manage separately—Mortgage Insurance and, effective with the June 30, 2014 acquisition of Clayton, our Services segment. Adjusted pretax operating income for each segment represents segment results on a standalone basis; therefore, inter-segment eliminations and reclassifications required for consolidated GAAP presentation have not been reflected. The operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. Previously, Radian Asset Assurance had represented substantially all of the financial guaranty segment; therefore, we no longer report a financial guaranty business segment. Certain corporate income and expenses that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations, such as corporate investment income, interest expense and corporate overhead expenses, have been reallocated to the Mortgage Insurance segment. Prior periods have been revised to conform to the current period presentation for these changes. See Note 2 for additional information related to discontinued operations.

We allocate to our Mortgage Insurance segment: (i) corporate expenses based on an allocated percentage of time spent on the Mortgage Insurance segment; (ii) all corporate cash and investments; (iii) all interest expense except for interest expense related to the Senior Notes due 2019 that were issued to purchase Clayton; and (iv) for periods prior to the April 1, 2015 sale of Radian Asset Assurance, corporate income and expenses that were previously allocated to our financial guaranty segment and were not allocated to discontinued operations.

We allocate to our Services segment: (i) corporate expenses based on an allocated percentage of time spent on the Services segment; and (ii) as noted above, all interest expense related to the Senior Notes due 2019. No corporate cash or investments are allocated to the Services segment. We have included Clayton’s results of operations from the June 30, 2014 date of acquisition. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation.

Effective with the fourth quarter of 2014, our Services segment undertook the management responsibilities of certain additional loan servicer surveillance functions that were previously considered part of our Mortgage Insurance segment. As a result, these services and activities are now reported in our Services segment for all periods presented.

20

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

Adjusted Pretax Operating Income (Loss)

Our senior management, including our Chief Executive Officer (our chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of Radian’s business segments and to allocate resources to the segments. Adjusted pretax operating income (loss) is defined as pretax income (loss) from continuing operations excluding the effects of: net gains (losses) on investments and other financial instruments; loss on induced conversion and debt extinguishment; acquisition-related expenses; amortization and impairment of intangible assets; and net impairment losses recognized in earnings.

Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (1) not viewed as part of the operating performance of our primary activities; or (2) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below.

(1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are classified as trading. These valuation adjustments may not necessarily result in economic gains or losses.

Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). However, we include the change in expected economic loss or recovery associated with our consolidated VIEs, if any, in the calculation of adjusted pretax operating income (loss).

(2) Loss on induced conversion and debt extinguishment. Gains or losses on early extinguishment of debt or losses incurred to purchase our convertible debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial and capital positions; therefore, these activities are not viewed as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss).

(3) Acquisition-related expenses. Acquisition-related expenses represent the costs incurred to effect an acquisition of a business (i.e., a business combination). Because we pursue acquisitions on a strategic and selective basis and not in the ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business activity. Therefore, we do not consider these expenses to be part of our operating performance and they are excluded from our calculation of adjusted pretax operating income (loss).

(4) Amortization and impairment of intangible assets. Amortization of intangible assets represents the periodic expense required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite useful life are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. These charges are not viewed as part of the operating performance of our primary activities and therefore are excluded from our calculation of adjusted pretax operating income (loss).

(5) Net impairment losses recognized in earnings. The recognition of net impairment losses on investments can vary significantly in both size and timing, depending on market credit cycles. We do not view these impairment losses to be indicative of our fundamental operating activities. Therefore, whenever these losses occur, we exclude them from our calculation of adjusted pretax operating income (loss).

21

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

Summarized operating results for our segments as of and for the periods indicated, are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Mortgage Insurance
Net premiums written—insurance	$	251,082		$	221,947		$	492,990		$	434,900
Increase in unearned premiums	(13,645		)	(18,301		)	(30,958		)	(32,492		)
Net premiums earned—insurance	237,437			203,646			462,032			402,408
Net investment income (1)	19,285			16,663			36,613			31,981
Other income (1)	1,743			1,620			3,074			2,616
Total	258,465			221,929			501,719			437,005
Provision for losses	31,637			64,648			77,488			114,274
Change in expected economic loss or recovery for consolidated VIEs	—			180			—			319
Policy acquisition costs	6,963			6,746			14,713			13,763
Other operating expenses before corporate allocations	41,853			36,356			75,903			74,120
Total (2)	80,453			107,930			168,104			202,476
Adjusted pretax operating income before corporate allocations	178,012			113,999			333,615			234,529
Allocation of corporate operating expenses (1)	12,516			17,021			22,274			32,905
Allocation of interest expense (1)	20,070			22,348			40,023			42,275
Adjusted pretax operating income	$	145,426		$	74,630		$	271,318		$	159,349

____________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations, as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Net investment income	$	—	$	1,392	$	882	$	2,689
Other income	—		113		26		182
Allocation of corporate operating expenses	—		4,412		2,074		8,561
Allocation of interest expense	—		15,943		9,918		30,498

(2) Includes inter-segment expenses as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Inter-segment expenses	$	1,092	$	—	$	1,994	$	—

22

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015		2014			2015			2014
Services
Services revenue	$	44,595	$	—		$	76,127		$	—
Other income	—		119			—			249
Total (1)	44,595		119			76,127			249
Direct cost of services	25,501		—			44,754			—
Other operating expenses before corporate allocations	11,522		642			20,379			1,501
Total	37,023		642			65,133			1,501
Adjusted pretax operating income (loss) before corporate allocations	7,572		(523		)	10,994			(1,252		)
Allocation of corporate operating expenses	1,307		—			2,288			—
Allocation of interest expense	4,431		—			8,863			—
Adjusted pretax operating income (loss)	$	1,834	$	(523	)	$	(157	)	$	(1,252	)

____________

(1) Includes inter-segment revenues as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Inter-segment revenues	$	1,092	$	—	$	1,994	$	—

Selected balance sheet information for our segments as of the periods indicated, is as follows:

	At June 30, 2015
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,384,224	$	352,280	$	5,736,504

	At December 31, 2014
(In thousands)	Mortgage Insurance		Services		Total
Assets held for sale (1)	$	—	$	—	$	1,736,444
Total assets	4,769,014		336,878		6,842,336

________________

(1) Assets held for sale are not part of the Mortgage Insurance or Services segments.

23

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The reconciliation of adjusted pretax operating income to consolidated pretax income from continuing operations is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Adjusted pretax operating income (loss):
Mortgage Insurance (1) (2)	$	145,426		$	74,630		$	271,318		$	159,349
Services (2)	1,834			(523		)	(157		)	(1,252		)
Total adjusted pretax operating income	147,260			74,107			271,161			158,097
Net gains on investments and other financial instruments (3)	28,448			25,512			45,227			68,619
Loss on induced conversion and debt extinguishment	(91,876		)	—			(91,876		)	—
Acquisition-related expenses	(567		)	(6,732		)	(774		)	(6,732		)
Amortization and impairment of intangible assets	(3,281		)	—			(6,304		)	—
Consolidated pretax income from continuing operations	$	79,984		$	92,887		$	217,434		$	219,984

______________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment, as listed in the preceding tables. These amounts represent items that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations.

(2) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables.

(3) The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains on investments and other financial instruments has been adjusted by $0.2 million and $0.3 million for the three and six months ended June 30, 2014, respectively, to reverse this item.

On a consolidated basis, “adjusted pretax operating income (loss)” is a measure not determined in accordance with GAAP. Total adjusted pretax operating income (loss) is not a measure of total profitability, and therefore should not be viewed as a substitute for GAAP pretax income (loss). Our definition of adjusted pretax operating income (loss) may not be comparable to similarly-named measures reported by other companies.

4. Fair Value of Financial Instruments

Available for sale securities, trading securities and certain other assets are recorded at fair value. All changes in the fair value of trading securities and certain other assets are included in our condensed consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in AOCI. There were no significant changes to our fair value methodologies during the six months ended June 30, 2015.

In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below:

Level I —    Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level II —    Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and

Level III —    Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available.

24

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The level of market activity used to determine the fair value hierarchy is based on the availability of observable inputs market participants would use to price an asset or a liability, including market value price observations. We provide a qualitative description of the valuation techniques and inputs used for Level II recurring and non-recurring fair value measurements in our audited annual financial statements as of December 31, 2014. For a complete understanding of those valuation techniques and inputs used as of June 30, 2015, these unaudited condensed consolidated financial statements should be read in conjunction with the audited annual financial statements and notes thereto included in our 2014 Form 10-K.

The following is a list of those assets that are measured at fair value by hierarchy level as of June 30, 2015:

(In millions)	Level I		Level II		Level III		Total
Assets at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	598.3	$	—	$	—	$	598.3
State and municipal obligations	—		330.8		—		330.8
Money market instruments	828.1		—		—		828.1
Corporate bonds and notes	—		1,321.7		—		1,321.7
RMBS	—		237.3		—		237.3
CMBS	—		383.4		—		383.4
Other ABS	—		274.0		—		274.0
Foreign government and agency securities	—		36.7		—		36.7
Equity securities	21.1		46.4		0.5		68.0
Other investments (1)	—		217.2		—		217.2
Total Investments at Fair Value (2)	1,447.5		2,847.5		0.5		4,295.5
Total Assets at Fair Value	$	1,447.5	$	2,847.5	$	0.5	$	4,295.5

______________________

(1) Comprising short-term certificates of deposit ($1.0 million) and short-term commercial paper ($216.2 million) included within Level II.

(2) Does not include certain other invested assets ($13.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

At June 30, 2015, total Level III assets of $0.5 million accounted for less than 0.1% of total assets measured at fair value. This investment was purchased during the three months ended June 30, 2015, and there were no related gains or losses recorded during the quarter. There were no Level III liabilities.

25

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2014:

(In millions)	Level I		Level II		Total
Assets at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	836.9	$	3.0	$	839.9
State and municipal obligations	—		362.8		362.8
Money market instruments	600.3		—		600.3
Corporate bonds and notes	—		992.8		992.8
RMBS	—		132.3		132.3
CMBS	—		246.8		246.8
Other ABS	—		185.5		185.5
Foreign government and agency securities	—		37.7		37.7
Equity securities (1)	164.0		51.6		215.6
Other investments (2)	—		1.0		1.0
Total Investments at Fair Value (3)	1,601.2		2,013.5		3,614.7
Total Assets at Fair Value	$	1,601.2	$	2,013.5	$	3,614.7

______________________

(1) Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and various preferred stocks invested across numerous companies and industries included within Level II.

(2) Comprising short-term certificates of deposit.

(3) Does not include certain other invested assets ($14.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Also excludes investments classified as assets held for sale of $495.1 million, $839.2 million and $102.6 million, with fair values categorized in Level I, Level II and Level III, respectively.

At December 31, 2014, there were no Level III assets other than those classified as assets held for sale, and total Level III liabilities of $3.8 million accounted for 100% of total liabilities measured at fair value.

There were no transfers between Level I and Level II for the three and six months ended June 30, 2015 or 2014. There were also no transfers involving Level III assets or liabilities for the three and six months ended June 30, 2015. For both the three and six months ended June 30, 2014, there were $17.3 million of other ABS securities transferred from Level II to Level III as the pricing inputs were no longer considered observable. During the three months ended September 30, 2014, all of our other ABS securities were transferred from Level III to Level II, as third-party pricing became available.

Other Fair Value Disclosure

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our condensed consolidated balance sheets were as follows as of the dates indicated:

	June 30, 2015					December 31, 2014
(In millions)	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
Assets:
Other invested assets	$	13.6	$	21.0	(1)	$	14.6	$	20.5	(1)
Liabilities:
Long-term debt	1,224.9		1,681.0		(1)	1,192.3		1,859.3		(1)

______________________

(1) These estimated fair values would be classified in Level II of the fair value hierarchy.

26

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

5. Investments

Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated:

	June 30, 2015
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	5,745	$	5,784	$	39	$	—
State and municipal obligations	17,668		18,476		810		2
Corporate bonds and notes	529,942		517,857		1,850		13,935
RMBS	158,134		156,532		513		2,115
CMBS	218,531		213,988		97		4,640
Other ABS	243,096		243,045		693		744
Foreign government and agency securities	23,330		23,160		186		356
	1,196,446		1,178,842		4,188		21,792
Equity securities available for sale	573		881		308		—
Total debt and equity securities	$	1,197,019	$	1,179,723	$	4,496	$	21,792

	December 31, 2014
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	5,709	$	5,751	$	48	$	6
State and municipal obligations	17,727		18,910		1,183		—
Corporate bonds and notes	277,678		284,408		7,288		558
RMBS	41,467		42,520		1,053		—
CMBS	57,358		58,234		876		—
Other ABS	109,420		107,701		8		1,727
Foreign government and agency securities	19,301		19,366		307		242
	528,660		536,890		10,763		2,533
Equity securities available for sale (1)	76,900		143,368		66,468		—
Total debt and equity securities	$	605,560	$	680,258	$	77,231	$	2,533

______________________

(1) Comprising broadly diversified domestic equity mutual funds ($143.0 million fair value) and a preferred stock investment in Freddie Mac ($0.4 million fair value).

27

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:

(In thousands)	June 30, 2015		December 31, 2014
Trading securities:
U.S. government and agency securities	$	131,335	$	134,530
State and municipal obligations	312,340		343,926
Corporate bonds and notes	660,964		708,361
RMBS	80,772		89,810
CMBS	169,443		188,615
Other ABS	30,952		77,755
Foreign government and agency securities	13,548		18,331
Equity securities	67,081		72,256
Total	$	1,466,435	$	1,633,584

For trading securities held at June 30, 2015 and December 31, 2014, we had net unrealized losses during the six months ended June 30, 2015 and unrealized gains during the year ended December 31, 2014 associated with those securities of $13.7 million and $65.7 million, respectively.

For the six months ended June 30, 2015, we did not transfer any securities from the available for sale or trading categories.

Net realized and unrealized gains (losses) on investments and other financial instruments consisted of:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Net realized gains (losses):
Fixed-maturities held to maturity	$	—		$	—		$	—		$	(9	)
Fixed-maturities available for sale	(8		)	(604		)	(59		)	(599		)
Equities available for sale	68,723			—			68,723			—
Trading securities	(8,291		)	(41		)	(12,859		)	(4,392		)
Short-term investments	4			—			4			—
Other	1			(63		)	106			(53		)
Net realized gains (losses) on investments	60,429			(708		)	55,915			(5,053		)
Unrealized (losses) gains on trading securities	(31,638		)	28,941			(10,937		)	76,572
Total net gains on investments	28,791			28,233			44,978			71,519
Net (losses) gains on other financial instruments	(343		)	(2,901		)	249			(3,219		)
Net gains on investments and other financial instruments	$	28,448		$	25,332		$	45,227		$	68,300

28

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The following tables show the gross unrealized losses and fair value of our securities deemed “available for sale” aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:

June 30, 2015: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
State and municipal obligations	1	$	5,727	$	2	—	$	—	$	—	1	$	5,727	$	2
Corporate bonds and notes	95	408,203		13,528		7	10,172		407		102	418,375		13,935
RMBS	9	116,631		2,115		—	—		—		9	116,631		2,115
CMBS	30	195,913		4,640		—	—		—		30	195,913		4,640
Other ABS	28	114,059		273		10	39,860		471		38	153,919		744
Foreign government and agency securities	11	10,971		340		1	183		16		12	11,154		356
Total	174	$	851,504	$	20,898	18	$	50,215	$	894	192	$	901,719	$	21,792

December 31, 2014: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	—	$	—	$	—	1	$	3,455	$	6	1	$	3,455	$	6
Corporate bonds and notes	24	40,917		410		1	1,027		148		25	41,944		558
Other ABS	34	97,356		1,727		—	—		—		34	97,356		1,727
Foreign government and agency securities	4	6,353		242		—	—		—		4	6,353		242
Total	62	$	144,626	$	2,379	2	$	4,482	$	154	64	$	149,108	$	2,533

During the first six months of 2015 and 2014, we did not recognize in earnings any impairment losses related to credit deterioration.

Although we held securities in an unrealized loss position as of June 30, 2015, we did not consider them to be other-than-temporarily impaired as of such date. For all investment categories, the unrealized losses of 12 months or greater duration as of June 30, 2015, were generally caused by interest rate or credit spread movements since the purchase date. As of June 30, 2015, we estimated that the present value of cash flows expected to be collected from these securities would be sufficient to recover the amortized cost basis of these securities. As of June 30, 2015, we did not have the intent to sell any debt securities in an unrealized loss position, and we determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis, which may be at maturity; therefore, we did not consider these investments to be other-than-temporarily impaired at June 30, 2015.

29

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The contractual maturities of fixed-maturity investments are as follows:

	June 30, 2015
	Available for Sale
(In thousands)	Amortized Cost		Fair Value
Due in one year or less (1)	$	7,381	$	7,399
Due after one year through five years (1)	51,208		51,265
Due after five years through ten years (1)	345,233		340,126
Due after ten years (1)	172,863		166,487
RMBS (2)	158,134		156,532
CMBS (2)	218,531		213,988
Other ABS (2)	243,096		243,045
Total	$	1,196,446	$	1,178,842

______________________

(1) Actual maturities may differ as a result of calls before scheduled maturity.

(2) RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date.

At June 30, 2015 and December 31, 2014, Radian Guaranty had $210.3 million and $209.3 million, respectively, in a collateral account pursuant to the Freddie Mac Agreement. These investments, which are primarily invested in trading securities, are pledged to cover Loss Mitigation Activity on the loans subject to that agreement. Subject to certain conditions in the Freddie Mac Agreement, amounts in the collateral account may be released to Radian Guaranty over time to the extent that Loss Mitigation Activity becomes final in accordance with the terms of the Freddie Mac Agreement. However, if the amount of Loss Mitigation Activity that becomes final in accordance with the Freddie Mac Agreement is less than $205 million prior to August 29, 2017, then any shortfall will be paid on that date to Freddie Mac from the funds remaining in the collateral account, subject to certain adjustments designed to allow for any Loss Mitigation Activity that has not become final or any claims evaluation that has not been completed as of that date. From the time the collateral account was established through June 30, 2015, approximately $128 million of Loss Mitigation Activity had become final in accordance with the Freddie Mac Agreement and approximately $13 million of submitted claims had been rescinded, denied, curtailed or cancelled, but were not yet considered final in accordance with the Freddie Mac Agreement.

6. Goodwill and Other Intangible Assets, Net

The following table shows the changes in the carrying amount of goodwill, all of which relates to our Services segment, as of and for the year-to-date periods ended June 30, 2015 and December 31, 2014:

(In thousands)	Goodwill		Accumulated Impairment Losses			Net
Balance at December 31, 2013	$	2,095	$	—		$	2,095
Goodwill acquired	191,932		—			191,932
Impairment losses	—		(2,095		)	(2,095		)
Balance at December 31, 2014	194,027		(2,095		)	191,932
Goodwill acquired	2,388		—			2,388
Impairment losses	—		—			—
Balance at June 30, 2015	$	196,415	$	(2,095	)	$	194,320

30

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

During the first quarter of 2015, Clayton further expanded its service offerings by acquiring Red Bell, a real estate brokerage company that provides products and services that include automated valuation models; broker price opinions used by investors, lenders and loan servicers; and advanced technology solutions for: (1) monitoring loan portfolio performance; (2) tracking non-performing loans; (3) managing REO assets; and (4) valuing and selling residential real estate through a secure platform. The acquisition did not meet the criteria to be considered a material business combination. The transaction was treated as a purchase for accounting purposes, with the excess of the acquisition price over the estimated fair value of the net assets acquired resulting in goodwill of $2.4 million. The goodwill represents the estimated future economic benefits arising from the assets acquired that did not qualify to be identified and recognized individually, and includes the value of the discounted expected future cash flows, the workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, whenever circumstances indicate potential impairment. Our goodwill balance at June 30, 2015 relates entirely to our Services segment, as a result of our acquisition of Clayton and its subsequent acquisition of Red Bell.

The following is a summary of the gross and net carrying amounts and accumulated amortization of our other intangible assets as of and for the year-to-date periods indicated:

	As of June 30, 2015
(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	$	83,072	$	(6,939	)	$	76,133
Technology	10,940		(1,741		)	9,199
Trademark	8,300		(807		)	7,493
Client backlog	6,680		(3,295		)	3,385
Non-competition agreements	185		(75		)	110
Total	$	109,177	$	(12,857	)	$	96,320
	As of December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	$	79,203	$	(2,917	)	$	76,286
Technology	8,970		(797		)	8,173
Trademark	7,860		(393		)	7,467
Client backlog	6,680		(2,406		)	4,274
Non-competition agreements	145		(37		)	108
Total	$	102,858	$	(6,550	)	$	96,308

The estimated aggregate amortization expense for the remainder of 2015 and thereafter is as follows (in thousands):

2015	$	6,548
2016	12,559
2017	11,918
2018	11,286
2019	10,050
2020	8,497
Thereafter	35,462

For tax purposes, substantially all of our goodwill and other intangible assets are expected to be deductible and will be amortized over a period of 15 years.

31

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

7. Reinsurance

The effect of reinsurance on net premiums written and earned is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Net premiums written-insurance:
Direct	$	258,198		$	238,590		$	513,446		$	467,859
Assumed	8			10			55			20
Ceded	(7,124		)	(16,653		)	(20,511		)	(32,979		)
Net premiums written-insurance	$	251,082		$	221,947		$	492,990		$	434,900
Net premiums earned-insurance:
Direct	$	249,797		$	221,171		$	491,961		$	437,047
Assumed	10			12			23			24
Ceded	(12,370		)	(17,537		)	(29,952		)	(34,663		)
Net premiums earned-insurance	$	237,437		$	203,646		$	462,032		$	402,408

In 2012, Radian Guaranty entered into two separate QSR agreements with a third-party reinsurance provider. As of June 30, 2015, RIF ceded under the Initial QSR Transaction and the Second QSR Transaction was approximately $1.0 billion and $1.4 billion, respectively.

The Second QSR Transaction provides that, effective December 31, 2015, Radian Guaranty will have the ability, at its option, to recapture half of the reinsurance ceded with respect to conventional GSE loans, which would result in Radian Guaranty reassuming the related RIF potentially in exchange for a payment of a profit commission amount from the reinsurer. Our results for the three and six months ended June 30, 2015 include an accrual of $5.8 million for this potential profit commission, based on experience to date for the Second QSR Transaction and our current expectation to exercise our option to recapture ceded RIF.

The following tables show the amounts related to the QSR Transactions for the periods indicated:

	Initial QSR Transaction
	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Ceded premiums written	$	3,822	$	5,046	$	7,889	$	10,350
Ceded premiums earned	6,424		6,803		12,442		13,610
Ceding commissions written	828		1,262		1,708		2,588

	Second QSR Transaction
	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Ceded premiums written	$	395	$	8,072	$	6,924	$	15,365
Ceded premiums earned	3,039		7,197		11,807		13,782
Ceding commissions written	2,154		2,825		4,439		5,378

Radian Guaranty has ceded the maximum amount permitted under the QSR Transactions (up to $1.6 billion of ceded RIF for each); therefore, Radian Guaranty is no longer ceding NIW under these transactions. Effective January 1, 2015, the ceding commission was reduced from 25% to 20% for two-thirds of the reinsurance ceded under the Initial QSR Transaction. Ceded losses to date under the QSR Transactions have been immaterial.

32

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

8. Other Assets

The following table shows the components of other assets for the periods indicated:

(In thousands)	June 30, 2015		December 31, 2014
Deposit with the IRS (Note 12)	$	88,557	$	88,557
Corporate-owned life insurance	81,998		80,755
Prepaid reinsurance premiums	47,835		57,291
Property and equipment (1)	35,380		27,248
Accrued investment income	24,475		20,022
Reinsurance recoverables	13,227		28,119
Deferred policy acquisition costs	9,866		12,003
Other	48,033		43,869
Total other assets	$	349,371	$	357,864

______________________

(1) Property and equipment, at cost less accumulated depreciation of $103.3 million and $100.2 million at June 30, 2015 and December 31, 2014, respectively.

9. Losses and Loss Adjustment Expense

All of the balance and activity of our consolidated reserve for losses and loss adjustment expense relate to the Mortgage Insurance segment. The following table shows our reserve for losses and LAE by category at the end of each period indicated:

(In thousands)	June 30, 2015		December 31, 2014
Reserve for losses by category:
Prime	$	562,918	$	700,174
Alt-A	256,854		292,293
A minus and below	148,043		179,103
IBNR and other	125,038		223,114
LAE	48,141		56,164
Reinsurance recoverable (1)	11,677		26,665
Total primary reserve	1,152,671		1,477,513
Pool	47,902		75,785
IBNR and other	891		1,775
LAE	2,353		3,542
Total pool reserve	51,146		81,102
Total First-lien reserve	1,203,817		1,558,615
Second-lien and other (2)	975		1,417
Total reserve for losses	$	1,204,792	$	1,560,032

______________________

(1) Primarily represents ceded losses on captive transactions and the QSR Transactions.

(2) Does not include our Second-lien PDR that is included in other liabilities.

33

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The following table presents information relating to our reserve for losses, including our IBNR reserve and LAE but excluding Second-lien PDR, for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Balance at beginning of period	$	1,384,714		$	1,893,960		$	1,560,032		$	2,164,353
Less reinsurance recoverables (1)	13,365			25,751			26,665			38,363
Balance at beginning of period, net of reinsurance recoverables	1,371,349			1,868,209			1,533,367			2,125,990
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2) (3)	53,617			75,472			134,054			184,321
Prior years (3)	(19,835		)	(11,207		)	(55,195		)	(70,896		)
Total incurred	33,782			64,265			78,859			113,425
Deduct paid claims and LAE related to:
Current year (2)	576			803			576			803
Prior years	211,440			239,448			418,535			546,389
Total paid	212,016			240,251			419,111			547,192
Balance at end of period, net of reinsurance recoverables	1,193,115			1,692,223			1,193,115			1,692,223
Add reinsurance recoverables (1)	11,677			22,458			11,677			22,458
Balance at end of period	$	1,204,792		$	1,714,681		$	1,204,792		$	1,714,681

_________________________

(1) Related to ceded losses on captive reinsurance transactions and the QSR Transactions. See Note 7 for additional information.

(2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.

(3) Amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year and prior years have been reclassified to correct an error. There was no net change to total incurred losses in any period as a result of these reclassifications. For the three and six months ended June 30, 2014, the amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year have been revised downward by approximately $14.4 million and $48.2 million, respectively, with an equal and offsetting adjustment to the amount previously reported for default notices reported and unreported in prior years. For the years ended December 31, 2014, 2013 and 2012, the amounts previously reported related to losses and LAE incurred from current year default notices should have been lower by approximately $71.8 million, $65.0 million and $75.7 million, respectively, with equal and offsetting adjustments to the incurred loss amounts related to prior years’ default notices.

Our loss reserve declined for the three and six months ended June 30, 2015, primarily as a result of the aggregate volume of paid claims, Cures, Rescissions and Claim Denials exceeding new default notices received. Reserves established for new default notices were the primary driver of our total incurred loss for the first six months of 2015. The impact to incurred losses from default notices reported in 2015 was partially mitigated by favorable reserve development on prior year defaults, which was driven primarily by a reduction in certain Default to Claim Rate assumptions based on observed trends of higher Cures than were previously estimated. We experienced similar favorable development related to incurred losses from prior year defaults during the first six months of 2014. Our results for the six months ended June 30, 2015 also include the impact of the BofA Settlement Agreement, as described below.

Total paid claims decreased for the three months ended June 30, 2015 compared to the comparable period in 2014, primarily due to the overall decline in defaulted loans and the ongoing reduction in pending claims. Claims paid for the six months ended June 30, 2015 include $174.6 million related to the implementation of the BofA Settlement Agreement.

34

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

Our aggregate weighted average Default to Claim Rate assumption (net of Claim Denials and Rescissions) used in estimating our primary reserve for losses declined slightly to 50% (45% excluding pending claims) at June 30, 2015, compared to 52% at December 31, 2014. The change in our Default to Claim Rate resulted primarily from a decrease in the proportion of pending claims, which have higher Default to Claim Rates, and a decrease in the assumed Default to Claim Rate for new defaults, as described below. We develop our Default to Claim Rate estimates on defaulted loans based on models that use a variety of loan characteristics to determine the likelihood that a default will reach claim status. Our Default to Claim Rate estimates on defaulted loans are mainly developed based on the Stage of Default and Time in Default of the underlying defaulted loans, as measured by the progress toward foreclosure sale and the number of months in default. During the six months ended June 30, 2015, we reduced our gross Default to Claim Rate assumption for new primary defaults from 16% to 14% due tocontinued improvement in actual claim development trends.As of June 30, 2015, our gross Default to Claim Rates on our primary portfolio ranged from 14% for new defaults, to approximately 65% for defaults not in Foreclosure Stage, and 81% for Foreclosure Stage Defaults. Our estimate of expected Rescissions and Claim Denials (net of expected Reinstatements) embedded in our Default to Claim Rate is generally based on our experience over the past year, with consideration given for differences in characteristics between those rescinded policies and denied claims and the loans remaining in our defaulted inventory, as well as the estimated impact of the BofA Settlement Agreement.

The following table illustrates the amount of First-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of any Reinstatements of previous Rescissions or Claim Denials within each period. Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement represent such activities, prior to the February 1, 2015 Implementation Date, on loans that subsequently became subject to the BofA Settlement Agreement.

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2015			2014			2015			2014
Rescissions, net	$	3.4		$	7.6		$	7.2		$	14.0
Claim Denials, net	3.6			6.4			9.2			25.3
Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement	(47.1		)	(2.5		)	(71.2		)	0.5
Net First-lien claims submitted for payment that were (reinstated), rescinded or denied (1)	$	(40.1	)	$	11.5		$	(54.8	)	$	39.8

______________________

(1) Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured.

Although our estimates of future Rescissions and Claim Denials have been declining, they remain elevated compared to levels experienced before 2009. The elevated levels of our rate of Rescissions and Claim Denials have reduced our paid losses and have resulted in a reduction in our loss reserve. Our estimate of net future Rescissions and Claim Denials reduced our loss reserve as of June 30, 2015 and December 31, 2014 by approximately $108 million and $125 million, respectively. The amount of estimated Rescissions and Claim Denials incorporated into our reserve analysis at any point in time is affected by a number of factors, including not only our estimated rate of Rescissions and Claim Denials on future claims, but also the volume and attributes of our defaulted insured loans, our estimated Default to Claim Rate and our estimated Claim Severity, among other assumptions. As of June 30, 2015, these assumptions also reflect the estimated impact of the BofA Settlement Agreement, as further discussed below.

As our Legacy Portfolio has become a smaller percentage of our overall insured portfolio, we have undertaken a reduced amount of Loss Mitigation Activity with respect to the claims we receive, and we expect this trend to continue. As a result, our future Loss Mitigation Activity is not expected to mitigate our paid losses to the same extent as in recent years.

35

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

Our reported Rescission and Claim Denial activity in any given period is subject to challenge by our lender and servicer customers. We expect that a portion of previous Rescissions will be reinstated and previous Claim Denials will be resubmitted with the required documentation and ultimately paid; therefore, we have incorporated this expectation into our IBNR reserve estimate. Our IBNR reserve estimate was $66.7 million and $163.6 million at June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015, the IBNR reserve estimate of $66.7 million included approximately $46.9 million for loans subject to the BofA Settlement Agreement. This amount compares to approximately $133.0 million in IBNR reserves for loans subject to the BofA Settlement Agreement as of December 31, 2014. The significant decrease in our IBNR reserve estimate at June 30, 2015 as compared to December 31, 2014, reflects the implementation of the BofA Settlement Agreement that commenced on February 1, 2015, including the reinstatement and payment during the period of certain previous Rescissions and Claim Denials.

The remaining IBNR reserve estimate as of June 30, 2015 included an estimate of future Reinstatements of previous Claim Denials, Rescissions and Claim Curtailments of $10.8 million, $0.6 million, and $2.2 million, respectively. These reserves relate to approximately $65.1 million of claims that were denied within the preceding 12 months, approximately $67.2 million of policies rescinded within the preceding 24 months, and approximately $28.3 million of Claim Curtailments within the preceding 24 months.

We also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated Rescission activity. Our accrued liability for such refunds, which is included within other liabilities on our condensed consolidated balance sheets, was $8.1 million and $9.0 million as of June 30, 2015 and December 31, 2014, respectively.

BofA Settlement Agreement

On September 16, 2014, Radian Guaranty entered into a Confidential Settlement Agreement and Release (the “BofA Settlement Agreement”) with Countrywide Home Loans, Inc. and Bank of America, N.A. (together, the “Insureds”), as a successor to BofA Home Loan Servicing f/k/a Countrywide Home Loans Servicing LP, in order to resolve various actual and potential claims or disputes related to the parties’ respective rights and duties as to mortgage insurance coverage on certain Subject Loans.

Implementation of the BofA Settlement Agreement commenced on February 1, 2015 for Subject Loans held in portfolio by the Insureds or purchased by the GSEs as of that date. Approximately 12% of the Subject Loans are neither held in portfolio by the Insureds nor owned by the GSEs, and require the consent of certain other investors for these loans to be included in the BofA Settlement Agreement, except with respect to certain limited rights of cancellation. While we can provide no assurance whether one or more of the other investors will consent to have their Subject Loans included in the settlement, for purposes of the reserve established for the BofA Settlement Agreement we have assumed that these investors will provide consent. The deadline for such consent has been extended to August 15, 2015. To the extent that one or more of the other investors do not consent to the settlement, the associated Loss Mitigation Activities would not be reinstated under the terms of the BofA Settlement Agreement and the portion of the reserve related to such non-consenting investors would be reversed. See Note 10 of Notes to Consolidated Financial Statements in our 2014 Form 10-K for additional information about the BofA Settlement Agreement.

10. Long-Term Debt

As described in Note 1, as of June 30, 2015, we early adopted the accounting update related to the presentation of debt issuance costs in financial statements. We believe that presenting long-term debt net of debt issuance costs is preferable as it is consistent with our presentation of debt discounts and premiums. The change in accounting principle has been applied retrospectively to prior periods. As a result, a reclassification of approximately $17.6 million of remaining debt issuance costs was made on our December 31, 2014 consolidated balance sheet, resulting in a reduction in other assets and a reduction in long-term debt; there was no impact on our results of operations or retained earnings.

36

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The following illustrates the impact of the reclassification:

		December 31, 2014
(In thousands)		As Previously Reported		Adjustment			As Adjusted
9.000%	Senior Notes due 2017	$	192,605	$	(2,360	)	$	190,245
3.000%	Convertible Senior Notes due 2017	375,310		(3,974		)	371,336
2.250%	Convertible Senior Notes due 2019	342,011		(5,878		)	336,133
5.500%	Senior Notes due 2019	300,000		(5,415		)	294,585
	Total long-term debt	$	1,209,926	$	(17,627	)	$	1,192,299

The carrying value of our long-term debt at June 30, 2015 and December 31, 2014 was as follows:

(In thousands)		June 30, 2015		December 31, 2014
9.000%	Senior Notes due 2017	$	191,256	$	190,245
3.000%	Convertible Senior Notes due 2017	51,917		371,336
2.250%	Convertible Senior Notes due 2019	342,980		336,133
5.500%	Senior Notes due 2019	295,198		294,585
5.250%	Senior Notes due 2020	343,541		—
	Total long-term debt	$	1,224,892	$	1,192,299

Senior Notes due 2020

In June 2015, we issued $350 million aggregate principal amount of Senior Notes due 2020 and received net proceeds of approximately $344.3 million. These notes mature on June 15, 2020 and bear interest at a rate of 5.250% per annum, payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2015. We have the option to redeem these notes, in whole or in part, at any time or from time to time prior to maturity at a redemption price equal to the greater of: (i) 100% of the aggregate principal amount of the notes to be redeemed; or (ii) the make-whole amount, which is the present value of the notes discounted at the applicable treasury rate plus 50 basis points, plus, in each case, accrued interest thereon to the redemption date.

The Senior Notes due 2020 have covenants customary for securities of this nature, including covenants related to the payments of the notes, reports, compliance certificates and modification of the covenants. Additionally, the indenture governing the Senior Notes due 2020 includes covenants restricting us from encumbering the capital stock of a designated subsidiary (as defined in the indenture for the notes) or disposing of any capital stock of any designated subsidiary unless either all of the stock is disposed of or we retain more than 80% of the stock.

Convertible Senior Notes due 2017 and 2019

Following the pricing of our Senior Notes due 2020, in June 2015, we entered into privately negotiated agreements with certain of the holders of our Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of our outstanding Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. We funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers approximately 28.4 million shares of Radian Group common stock. Our purchases of Convertible Senior Notes due 2017 resulted in a pretax charge of approximately $91.9 million in the second quarter of 2015. This charge represents:

• the $35.5 million market premium representing the consideration paid to the sellers of the Convertible Senior Notes due 2017 in excess of the conversion value of the purchased Convertible Senior Notes due 2017;

• the $52.3 million difference between the fair value and the carrying value of the liability component of the purchased Convertible Senior Notes due 2017; and

• the $4.1 million net impact of transaction costs and unamortized debt issuance costs on the purchased Convertible Senior Notes due 2017. 

37

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

In connection with our June 2015 purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of approximately $54.9 million, consisting of 2.3 million shares of Radian Group common stock and $12.0 million in cash. In accordance with the accounting standards regarding equity and contracts in an entity’s own equity, the total consideration received was recorded as an increase to additional paid-in capital. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares.

During the three-month period ended June 30, 2015, our closing stock price exceeded the thresholds required for the holders of our Convertible Senior Notes due 2017 and our Convertible Senior Notes due 2019 to be able to exercise their conversion rights during the three-month period ending September 30, 2015. In any period when holders of the Convertible Senior Notes due 2017 are eligible to exercise their conversion option, the equity component related to these instruments is classified as mezzanine (temporary) equity, because we are required to settle the aggregate principal amount of the notes in cash. If in any future period the conversion threshold requirements of our Convertible Senior Notes due 2017 are not met, then the difference between (1) the amount of cash deliverable upon conversion (i.e., par value of debt) and (2) the carrying value of the debt component will be reclassified from mezzanine equity to permanent equity, and will continue to be reported as permanent equity for any period in which the debt is not currently convertible. Our conversion obligation for the Convertible Senior Notes due 2019 may be satisfied by paying or delivering, as the case may be, cash, shares of Radian Group common stock or a combination of cash and shares of Radian Group common stock, at our election.

Issuance and transaction costs incurred at the time of the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of proceeds and are accounted for as debt issuance costs and equity issuance costs, respectively. The convertible notes are reflected on our condensed consolidated balance sheets as follows:

	Convertible Senior Notes due 2017						Convertible Senior Notes due 2019
(In thousands)	June 30, 2015			December 31, 2014			June 30, 2015			December 31, 2014
Liability component:
Principal	$	60,914		$	450,000		$	399,992		$	400,000
Debt discount, net (1)	(8,546		)	(74,690		)	(51,793		)	(57,989		)
Debt issuance costs (1)	(451		)	(3,974		)	(5,219		)	(5,878		)
Net carrying amount	$	51,917		$	371,336		$	342,980		$	336,133
Equity component of currently redeemable convertible senior notes	$	8,546		$	74,690		$	—		$	—

__________________

(1) Included within long-term debt and is being amortized over the life of the convertible notes.

38

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The following tables set forth total interest expense recognized related to the convertible notes for the periods indicated:

	Convertible Senior Notes due 2017
	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2015		2014		2015		2014
Contractual interest expense	$	3,122	$	3,375	$	6,497	$	6,750
Amortization of debt issuance costs	298		304		616		604
Amortization of debt discount	5,394		5,312		11,102		10,498
Total interest expense	$	8,814	$	8,991	$	18,215	$	17,852

	Convertible Senior Notes due 2019
	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2015		2014		2015		2014
Contractual interest expense	$	2,250	$	2,250	$	4,500	$	4,500
Amortization of debt issuance costs	330		319		658		635
Amortization of debt discount	3,123		2,934		6,196		5,823
Total interest expense	$	5,703	$	5,503	$	11,354	$	10,958

39

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

11. Accumulated Other Comprehensive (Loss) Income

The following table shows the rollforward of AOCI as of the periods indicated. During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $68.7 million.

	Three Months Ended June 30, 2015										Six Months Ended June 30, 2015
(In thousands)	Before Tax			Tax Effect			Net of Tax				Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	91,806		$	32,132		$	59,674			$	79,208		$	27,723		$	51,485
OCI:
Net foreign currency translation adjustments	243			85			158				49			17			32
Unrealized gains (losses) on investments:
Unrealized holding losses arising during the period	(33,261		)	(11,641		)	(21,620		)		(23,332		)	(8,166		)	(15,166		)
Less: Reclassification adjustment for net gains included in net income (1)	68,714			24,050			44,664				68,663			24,032			44,631
Net unrealized losses on investments	(101,975		)	(35,691		)	(66,284		)		(91,995		)	(32,198		)	(59,797		)
Activity related to investments recorded as assets held for sale (2)	(7,818		)	(2,736		)	(5,082		)	(3)	(5,006		)	(1,752		)	(3,254		)
OCI	(109,550		)	(38,342		)	(71,208		)		(96,952		)	(33,933		)	(63,019		)
Balance at end of period	$	(17,744	)	$	(6,210	)	$	(11,534	)		$	(17,744	)	$	(6,210	)	$	(11,534	)
	Three Months Ended June 30, 2014										Six Months Ended June 30, 2014
(In thousands)	Before Tax			Tax Effect			Net of Tax				Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	61,185		$	19,841		$	41,344			$	57,345		$	19,962		$	37,383
OCI:
Unrealized gains (losses) on investments:
Unrealized holding gains (losses) arising during the period	8,422			(211		)	8,633				11,092			(210		)	11,302
Less: Reclassification adjustment for net losses included in net income (1)	(604		)	(211		)	(393		)		(599		)	(210		)	(389		)
Net unrealized gains on investments	9,026			—			9,026				11,691			—			11,691
Activity related to investments recorded as assets held for sale (2)	646			(1		)	647				1,821			(122		)	1,943
OCI	9,672			(1		)	9,673				13,512			(122		)	13,634
Balance at end of period	$	70,857		$	19,840		$	51,017			$	70,857		$	19,840		$	51,017

_________________________

(1) Included in net gains on investments and other financial instruments on our condensed consolidated statements of operations.

(2) Represents the unrealized holding gains (losses) arising during the period on investments recorded as assets held for sale, net of reclassification adjustments for net gains (losses) included in net income from discontinued operations.

(3) For the three months ended June 30, 2015, this amount represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in AOCI.

40

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

12. Income Taxes

We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our DTAs and DTLs are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our condensed consolidated financial statements and the tax bases of these amounts. DTAs and DTLs are measured using the enacted tax rates expected to apply to taxable income in the periods in which the DTA or DTL is expected to be realized or settled.

Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for continuing operations for the full year. When estimating our full year 2015 and 2014 annual effective tax rate, we accounted for the tax effects of gains and losses on our investments, changes as a result of the accounting standard regarding the accounting for uncertainty in income taxes, and other adjustments discretely at the federal applicable tax rate. Our effective tax rate as of June 30, 2014 was also impacted by our full valuation allowance against our DTAs.

Our June 2015 purchases of Convertible Senior Notes due 2017 resulted in a pretax charge in the Statements of Operations of approximately $91.9 million in the second quarter of 2015. This included approximately $35.5 million of market premium related to the purchases of which approximately $28.9 million is estimated to be non-deductible for tax purposes and impacted our effective tax rate. Overall, we recorded an income tax benefit in the Statements of Operations of approximately $22.0 million related to these purchases as of June 30, 2015.

For federal income tax purposes, we had approximately $1.3 billion of NOL carryforwards and $6.0 million of foreign tax credit carryforwards as of June 30, 2015. To the extent not utilized, the NOL carryforwards will expire during tax years 2028 through 2032 and the foreign tax credit carryforwards will expire during tax years 2018 through 2020. Certain entities within our consolidated group have also generated DTAs of approximately $35.5 million relating to state and local NOL carryforwards, which if unutilized, will expire during various future tax periods.

We are required to establish a valuation allowance against our DTAs when it is more likely than not that all or some portion of our DTAs will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our DTAs will be realized in future periods. In making this assessment as of June 30, 2015, we determined that certain state and local NOLs, relating to non-insurance entities within our consolidated group, may not be realized during their appropriate carryforward period. Therefore, we have recorded a valuation allowance of approximately $21.5 million relating to these state and local NOL DTAs as of June 30, 2015.

As previously disclosed, we are contesting adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. The IRS opposes the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of non-economic REMIC residual interests and proposed adjustments denying the associated tax benefits of these items. We appealed these proposed adjustments to Appeals and made “qualified deposits” with the U.S. Treasury of approximately$85 millionin June 2008 relating to the 2000 through 2004 tax years and approximately$4 millionin May 2010 relating to the 2005 through 2007 tax years in order to avoid the accrual of above-market-rate interest with respect to the proposed adjustments.

We made several attempts to reach a compromised settlement with Appeals, but in January 2013, we were notified that Appeals had rejected our latest settlement offer and planned to issue formal Notices of Deficiency related to certain losses and deductions resulting from our investment in the portfolio of non-economic REMIC residual interests, as discussed above.On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties of approximately$157 million. The Deficiency Amount has not been reduced to reflect our NOL carryback ability.As of June 30, 2015, there also would be interest of approximately$120 millionrelated to these matters. Depending on the outcome, additional state income taxes, penalties and interest (estimated in the aggregate to be approximately$31 millionas of June 30, 2015) also may become due when a final resolution is reached. The Notices of Deficiency also reflected additional amounts due of approximately$105 million, which are primarily associated with the disallowance of the previously filed carryback of our 2008 NOL to the 2006 and 2007 tax years. We believe that the disallowance of our 2008 NOL carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL carryback claim.

41

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

On December 3, 2014, we petitioned the U.S. Tax Court to litigate the Deficiency Amount. The litigation could take several years to resolve and may result in substantial legal expenses. We can provide no assurance regarding the outcome of any such litigation or whether a compromised settlement with the IRS will ultimately be reached. We believe that an adequate provision for income taxes has been made for the potential liabilities that may result from this matter. However, if the ultimate resolution of this matter produces a result that differs materially from our current expectations, there could be a material impact on our effective tax rate, results of operations and cash flows.

13. Statutory Information

We prepare our statutory financial statements in accordance with the accounting practices required or permitted, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries. Required statutory accounting practices are established by a variety of publications of the NAIC as well as state laws, regulations and general administrative rules. In addition, insurance departments have the right to permit other specific practices that may deviate from prescribed practices. As of June 30, 2015, our use of any prescribed or permitted statutory accounting practices did not result in reported statutory surplus or risk-based capital being significantly different from what would have been reported if NAIC statutory accounting practices had been followed.

The state insurance regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries’ statutory financial position and results of operations, as described below. Failure to maintain adequate levels of capital could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. As of June 30, 2015, the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $2.6 billion of our consolidated net assets.

Radian Guaranty

Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a minimum ratio of statutory capital relative to the level of net RIF, or “Risk-to-capital.” The sixteen RBC States currently impose a Statutory RBC Requirement. The most common Statutory RBC Requirement is that a mortgage insurer’s Risk-to-capital may not exceed 25 to 1. In certain of the RBC States, a mortgage insurer must satisfy an MPP Requirement. The statutory capital requirements for the non-RBC States are de minimis (ranging from $1 million to $5 million); however, the insurance laws of these states generally grant broad supervisory powers to state agencies or officials to enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. Unless an RBC State grants a waiver or other form of relief, if a mortgage insurer is not in compliance with the Statutory RBC Requirement of that state, the mortgage insurer may be prohibited from writing new mortgage insurance business in that state. Radian Guaranty’s domiciliary state, Pennsylvania, is not one of the RBC States. For the six months ended June 30, 2015 and the year ended December 31, 2014, the RBC States accounted for approximately 56% of Radian Guaranty’s total primary NIW in each period.

Radian Guaranty was in compliance with the Statutory RBC Requirements or MPP Requirements, as applicable, in each of the RBC States as of June 30, 2015. See Note 1 for information regarding potential changes to the Model Act (which may result in more stringent Statutory RBC Requirements and MPP Requirements in states that adopt the Model Act) as well as the PMIERs for GSE eligibility.

42

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital calculation, as well as the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus (i.e., statutory capital and surplus) plus statutory contingency reserves.

	June 30, 2015		December 31, 2014
($ in millions)
RIF, net (1)	$	32,290.6	$	30,615.7
Statutory policyholders’ surplus	$	1,367.0	$	1,325.2
Contingency reserve	592.7		389.4
Statutory capital	$	1,959.7	$	1,714.6
Risk-to-capital	16.5:1		17.9:1

_______________________

(1) Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans.

The reduction in Radian Guaranty’s Risk-to-capital in the first six months of 2015 was primarily due to increases in statutory net income, partially offset by an increase in net RIF at Radian Guaranty. For the six months ended June 30, 2015, Radian Guaranty had statutory net income of $295.7 million.

We have actively managed Radian Guaranty’s capital position in various ways, including: (1) through internal and external reinsurance arrangements; (2) by seeking opportunities to reduce our risk exposure through negotiated transactions; and (3) by contributing additional capital from Radian Group. Given our current financial projections for Radian Guaranty, which are subject to risks and uncertainties, we expect Radian Guaranty’s Risk-to-capital to decrease over time.

Radian Asset Assurance

Radian Asset Assurance was our financial guaranty subsidiary and was, until the April 1, 2015 sale date, domiciled and licensed in New York as a monoline financial guaranty insurer. It was also licensed under the New York insurance laws to write some types of surety insurance and credit insurance. See Note 2 for additional information related to discontinued operations.

14. Selected Financial Information of Registrant—Radian Group—Parent Company Only

(In thousands)	June 30, 2015		December 31, 2014
Investment in subsidiaries, at equity in net assets	$	3,018,264	$	2,746,915
Total assets	3,869,439		3,741,648
Long-term debt	1,224,892		1,192,299
Total liabilities	1,507,495		1,569,898
Equity component of currently redeemable convertible senior notes	8,546		74,690
Total stockholders’ equity	2,353,398		2,097,060
Total liabilities and stockholders’ equity	3,869,439		3,741,648

43

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

15. Commitments and Contingencies

Legal Proceedings

We are routinely involved in a number of legal actions, regulatory inquiries, investigations and reviews, audits and other proceedings, the outcomes of which are uncertain. The legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals for a legal proceeding only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range.

In the course of our regular review of pending legal matters, we determine whether it is reasonably possible that a potential loss relating to a legal proceeding may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to legal loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any.

Loss estimates are inherently subjective, based on currently available information, and are subject to management’s judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and unpredictability surrounding the outcome of legal and other proceedings, actual results may differ materially from any amounts that have been accrued.

As previously disclosed, we had been named as a defendant in certain putative class action lawsuits alleging, among other things, that our captive reinsurance agreements violated RESPA. The cases included The White Case, The Menichino Case and The Manners Case, as referenced in Note 17 of our 2014 Form 10-K. On March 25, 2015, Radian Guaranty and the plaintiffs in these putative class action lawsuits entered into a settlement agreement, pursuant to which the plaintiffs agreed to voluntarily dismiss their claims with prejudice and to fully release Radian Guaranty from any future claims related to the claims in these lawsuits.

We are involved in litigation that has arisen in the normal course of our business. We are contesting the allegations in each such pending action and management believes, based on current knowledge and after consultation with counsel, that the outcome of such litigation will not have a material adverse effect on our consolidated financial condition. However, the outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of the matters currently pending or threatened could have an unanticipated adverse effect on our liquidity, financial condition or results of operations for any particular period.

We are subject to regulatory inquiries, investigations and reviews. We and other mortgage insurers have been subject to inquiries from the Minnesota Department of Commerce requesting information relating to captive reinsurance. We have cooperated with these requests for information. In June 2015, Radian Guaranty executed a Consent Order with the Minnesota Department of Commerce that resolved the Minnesota Department of Commerce’s outstanding inquiries related to captive reinsurance arrangements involving mortgage insurance in Minnesota without any findings of wrongdoing. As part of the Consent Order, Radian Guaranty paid an immaterial amount to Minnesota and agreed not to enter into new captive reinsurance arrangements for a period of ten years ending in June 2025. We have not entered into any new captive reinsurance arrangements since 2007.

44

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

In June 2015, we and other mortgage insurers received a letter from the Office of the Commissioner of Insurance of the State of Wisconsin (“Wisconsin OCI”) requesting information pertaining to customized insurance rates and terms offered to mortgage insurance customers. We submitted a response to the Wisconsin OCI in June 2015, as requested. Although we believe we are in compliance with applicable Wisconsin state law requirements for mortgage guaranty insurance, we cannot predict the outcome of this matter or whether additional inquiries, actions or proceedings may be pursued against us by the Wisconsin OCI or other regulators.

On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties of approximately$157 million. The Deficiency Amount has not been reduced to reflect our NOL carryback ability. On December 3, 2014, we petitioned the U.S. Tax Court to litigate the Deficiency Amount. See Note 12 for additional information regarding this litigation.

Our Master Policies establish the timeline within which any suit or action arising from any right of an insured under the policy generally must be commenced. We continue to face a number of challenges from certain customers regarding our Loss Mitigation Activities, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials or Claim Curtailments. We are currently in discussions with some customers regarding our Loss Mitigation Activities and our claim payment practices, which if not resolved, could result in arbitration or additional judicial proceedings. See Note 9 for further information.

Further, we have identified loans in our total defaulted portfolio (in particular, our older defaulted portfolio) for which actions or proceedings such as foreclosure that provide the insured with title to the property may not have been commenced within the outermost deadline established in our Prior Master Policy. We currently are in discussions with the servicers for these loans regarding this potential violation and our corresponding rights under the Prior Master Policy. While we can provide no assurance regarding the outcome of these discussions or the ultimate resolution of these issues, it is possible that these discussions could result in arbitration or legal proceedings.

The elevated levels of our Loss Mitigation Activities (related to servicer negligence) have led to an increased risk of litigation by lenders, policyholders and servicers challenging our right to rescind coverage, deny claims or curtail claim amounts. We believe that our loss mitigation actions are justified under our policies. However, in the event we are not successful in defending our Loss Mitigation Activities, we may need to reassume the risk on and increase loss reserves for previous Rescissions or pay additional claims on curtailed amounts. See Note 9 for further information.

Other

Securities regulations became effective in 2005 that impose enhanced disclosure requirements on issuers of ABS (including mortgage-backed securities). To allow our customers to comply with these regulations at that time, we typically were required, depending on the amount of credit enhancement we were providing, to provide: (1) audited financial statements for the insurance subsidiary participating in the transaction; or (2) a full and unconditional holding company-level guarantee for our insurance subsidiaries’ obligations in such transactions. Radian Group has guaranteed two structured transactions for Radian Guaranty involving approximately $87.4 million of remaining credit exposure as of June 30, 2015.

As part of the non-investment-grade allocation component of our investment program, we had unfunded commitments of $7.4 million at June 30, 2015, related to alternative investments that are primarily private equity structures. These commitments have capital calls expected through 2015, with the possibility of additional calls through 2017, and certain fixed expiration dates or other termination clauses.

As previously disclosed, Radian Asset Assurance, our former financial guaranty subsidiary, received a series of claims (€13.5 million, or $16.4 million, as of December 31, 2014) from one of its trade credit and surety ceding companies related to surety bonds for Spanish housing cooperative developments. This legal matter was part of our discontinued operations as of December 31, 2014, and was transferred to Assured at the completion of the sale of Radian Asset Assurance on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement. As a result, we no longer have any risk of loss associated with this matter.

45

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

16. Capital Stock

In June 2015, we entered into privately negotiated agreements with certain of the holders of our Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of our outstanding Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. We funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers approximately 28.4 million shares of Radian Group common stock. In connection with our purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of approximately $54.9 million, consisting of 2.3 million shares of Radian Group common stock and $12.0 million in cash. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares.

On June 18, 2015, we reported that our board of directors had authorized an ASR program to repurchase an aggregate of approximately $202 million of Radian Group common stock. During the three-month period ended June 30, 2015, 9.2 million initial shares were repurchased under this program. All share repurchases made to date were funded from the proceeds of the Senior Notes due 2020.

Under the ASR program, the total number of shares ultimately delivered to Radian Group will be based on the average of the daily volume-weighted average price of Radian Group common stock during the term of the transaction, less a negotiated discount and subject to certain other adjustments pursuant to the terms and conditions of the program. If the adjusted average price of Radian Group common stock during the term of the transaction is higher than the initial repurchase price, Radian Group may be required to make an adjustment payment, which it may make, at its election, in cash or in shares of Radian Group common stock. If an adjustment payment is required from the counterparty, the counterparty may be required to deliver to Radian Group additional shares of Radian Group common stock or, at our election under certain circumstances, a combination of Radian Group common stock and cash. Final settlement of the ASR program is expected to occur in October 2015, and may occur earlier at the option of the counterparty to the agreement.

We also may purchase shares on the open market to meet option exercise obligations and to fund 401(k) matches and purchases under our ESPP.

17. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common shareholders by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Dilutive potential common shares relate to our stock-based compensation arrangements and our outstanding convertible senior notes. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations.

46

Radian Group Inc.

Notes to Unaudited Condensed Consolidated Financial Statements — (Continued)

The calculation of the basic and diluted net income per share was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except share and per share amounts)	2015		2014		2015		2014
Net income from continuing operations:
Net income from continuing operations - basic	$	45,193	$	103,537	$	136,920	$	249,517
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	3,707		5,503		7,380		10,958
Net income from continuing operations - diluted	$	48,900	$	109,040	$	144,300	$	260,475
Net income:
Net income from continuing operations - basic	$	45,193	$	103,537	$	136,920	$	249,517
Income from discontinued operations, net of tax	4,855		71,296		5,385		128,075
Net income - basic	50,048		174,833		142,305		377,592
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	3,707		5,503		7,380		10,958
Net income - diluted	$	53,755	$	180,336	$	149,685	$	388,550
Average common shares outstanding - basic	193,112		182,583		192,245		177,903
Dilutive effect of Convertible Senior Notes due 2017	12,438		7,599		11,789		8,306
Dilutive effect of Convertible Senior Notes due 2019	37,736		37,736		37,736		37,736
Dilutive effect of stock-based compensation arrangements (2)	3,364		2,861		3,211		2,822
Adjusted average common shares outstanding - diluted	246,650		230,779		244,981		226,767
Net income per share:
Basic:
Net income from continuing operations	$	0.23	$	0.57	$	0.71	$	1.40
Income from discontinued operations	0.03		0.39		0.03		0.72
Net income	$	0.26	$	0.96	$	0.74	$	2.12
Diluted:
Net income from continuing operations	$	0.20	$	0.47	$	0.59	$	1.15
Income from discontinued operations	0.02		0.31		0.02		0.56
Net income	$	0.22	$	0.78	$	0.61	$	1.71

________________

(1) As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion.

(2) The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of net income per share because they were anti-dilutive:

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2015	2014	2015	2014
Shares of common stock equivalents	264	1,484	530	1,484

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following analysis should be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in this report, and our audited annual financial statements, notes thereto and MD&A included in our 2014 Form 10-K, for a more complete understanding of our financial position and results of operations. Certain terms and acronyms used throughout this report are defined in the Glossary of Abbreviations and Acronyms included as part of this report. In addition, investors should review the “Cautionary Note Regarding Forward LookingStatements—Safe Harbor Provisions” above and the “Risk Factors” detailed in Item 1A of our 2014 Form 10-K and in Item 1A of Part II of our Quarterly Reports on Form 10-Q filed during 2015, including this Quarterly Report on Form 10-Q, for a discussion of those risks and uncertainties that have the potential to affect our business, financial condition, results of operations, cash flows or prospects in a material and adverse manner. Our results of operations for interim periods are not necessarily indicative of results to be expected for the full year or for any other period.

Overview

We provide mortgage insurance on First-liens, and products and services to the mortgage and real estate industries. We currently have two business segments—Mortgage Insurance and Services. Our Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance, to mortgage lending institutions. We conduct our mortgage insurance business primarily through Radian Guaranty, our principal mortgage insurance subsidiary. Our Services segment provides services and solutions to the mortgage and real estate industries primarily through Clayton, which we acquired on June 30, 2014, and its subsidiaries, including Green River Capital and Red Bell.

Operating Environment and Business Strategy. As a seller of mortgage credit protection and mortgage and real estate products and services, our results are subject to macroeconomic conditions and specific events that impact the mortgage origination environment and the credit performance of our underlying insured assets. The financial crisis and the downturn in the housing and related credit markets that began in 2007 had a significant negative impact on the operating environment and results of operations for our businesses. More recently, our operating environment has improved as the U.S. economy and housing market have been recovering, evidenced by a reduction in unemployment, a reduction in foreclosures, and appreciation in home prices. The credit performance of loans originated after 2008 also has improved significantly. In response to the financial crisis, including the adoption of new lending laws and regulations, credit for home financing has remained restrictive, and post-2008 loan originations have consisted primarily of high credit quality loans. At the same time, this restrictive credit environment has made it more challenging for many first-time home buyers to finance a home, which has limited the growth of the mortgage industry.

We have written a significant amount of NIW in this improving environment, which has resulted in our Legacy Portfolio declining as a proportion of our total mortgage insurance portfolio. As of June 30, 2015, our Legacy Portfolio had been reduced to approximately 28% of our total primary RIF, while insurance on mortgage loans written after 2008 constituted approximately 72% of our total primary RIF. Further, the improving environment has contributed to a reduction in our incurred losses and claims submitted and paid in our mortgage insurance business, with new primary mortgage insurance defaults declining by 14% in the six months endedJune 30, 2015 compared to the number of new defaults in the comparable period of 2014 and our primary default rate of 4.3% at June 30, 2015 declining from 5.8% at June 30, 2014. As the negative impact from losses in our Legacy Portfolio has been reduced and we have continued to write a high volume of insurance on high credit quality loans, our results of operations have improved.

48

The improvement in macroeconomic and credit trends has encouraged new entrants into the private mortgage insurance industry, while improving the financial strength of existing private mortgage insurers. This has resulted in an increasingly competitive environment for private mortgage insurers. Our competitors include other private mortgage insurers and the FHA. We compete on the basis of price, terms and conditions, customer relationships, perceived financial strength and overall service. Price competition among private mortgage insurers is intense and private mortgage insurers have increased their use of programs that offer customized rates for individual lenders on lender-paid Single Premium Policies. Our use of these programs has resulted in premium rates on lender-paid Single Premium Policies for certain lenders that are less than our standard rates for Single Premium Policies. The increasing utilization of reduced-rate product, together with the elevated level of refinancing activity we experienced in the first half of 2015, contributed to an increase in our total mix of Single Premium Policies to 34% of our portfolio for the first six months of 2015, compared to 25% for the first six months of 2014. More recently, the percentage of total Single Premium Policies written in the second quarter of 2015 decreased from the first quarter of 2015, to 32% from 37%. The increase in 2015 in utilization of reduced rates for Single Premium Policies has not had a significant impact on our overall premium rates or returns. We believe that, assuming our current pricing, writing a mix of business consisting of approximately one-third Single Premium Policies can be absorbed into our portfolio over time within our overall risk and return target ranges.

On June 30, 2015, the GSEs updated the PMIERs Financial Requirements to increase the amount of Available Assets required for loans originated on or after January 1, 2016 that are insured under lender-paid mortgage insurance policies not subject to automatic termination. Assuming no change to our product mix, this update would apply to a significant portion of our future Single Premium Policies, and therefore would increase the amount of Available Assets Radian Guaranty is required to hold on certain future originations. We are currently evaluating the PMIERs Financial Requirements in light of this update and will be monitoring the impact it may have on the market for lender-paid mortgage insurance. See Recent Developments—Final PMIERs for additional information.

Our Services segment provides a diverse array of services to participants in multiple facets of the residential mortgage and real estate finance markets and therefore has the ability to generate revenue in both healthy and distressed mortgage market conditions. Historically, a significant portion of Clayton’s revenue has been generated from activities related to non-agency RMBS issuance, which has been limited in recent years. We believe that the potential re-emergence of the non-agency RMBS market may represent a significant long-term growth opportunity for our Services segment. In addition, our Services segment has recently experienced revenue growth from its products serving the single family rental market, which is an emerging market that has experienced rapid growth over the past few years.

Currently, our business strategy is focused on: (1) growing our Mortgage Insurance business by writing insurance on high-quality mortgages in the U.S. and by exploring potential international opportunities; (2) leveraging our Services segment product offerings to deepen our mortgage insurance customer relationships; (3) growing our fee-based revenues as a percentage of Radian’s total revenues, primarily by expanding our presence in the real estate and mortgage finance industries; (4) continuing to manage losses and reduce our Legacy Portfolio; and (5) continuing to effectively manage our capital and liquidity positions, including compliance with the PMIERs Financial Requirements and other regulatory requirements, as well as strengthening our balance sheet and improving our debt maturity profile with the objective of regaining investment-grade credit ratings in the future. See Note 1 of Notes to Unaudited Condensed Consolidated Financial Statements for information regarding the PMIERs.

Recent Developments

Recent Debt and Equity Transactions. During the second quarter of 2015, Radian Group successfully completed a series of transactions for the purpose of strengthening its capital position, including to reduce its overall cost of capital and improve the maturity profile of its debt. This series of transactions had four components:

• the issuance of $350 million aggregate principal amount of Senior Notes due 2020;

• the purchases of approximately $389.1 million aggregate principal amount of its Convertible Senior Notes due 2017;

• the termination of a corresponding portion of the capped call transactions related to the purchased Convertible Senior Notes due 2017; and

• the entry into an ASR program to repurchase an aggregate of $202 million of Radian Group common stock.

See Notes 10 and 16 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the individual transactions.

49

The purchases of the Convertible Senior Notes due 2017 resulted in a loss on induced conversion and debt extinguishment of approximately $91.9 million in the second quarter of 2015. As a result of the combined impact of the purchases of the Convertible Senior Notes due 2017 and the issuance of the Senior Notes due 2020, Radian expects a net reduction of $38.7 million in interest and amortization expense between the closing date of the purchases and November 15, 2017, the original maturity date of the purchased notes. We also received total consideration of approximately $54.9 million from the termination of the capped call transactions related to the purchased Convertible Senior Notes due 2017, consisting of 2.3 million shares of Radian Group common stock and $12.0 million in cash. In accordance with the accounting standards regarding equity and contracts in an entity’s own equity, the total consideration received was recorded as an increase to additional paid-in capital. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares.

In the aggregate, these recent debt and equity transactions resulted in:

• a net increase in available holding company liquidity of approximately $24.3 million;

• a net increase in long-term debt of approximately $16.0 million, excluding the impact of the reclassification of unamortized debt issuance costs;

• a net decrease in the equity component of currently redeemable convertible senior notes of approximately $55.0 million; and

• a net increase in stockholders’ equity of approximately $89.2 million.

The ASR program was implemented to reduce the dilutive impact of the shares issued in connection with our purchases of Convertible Senior Notes due 2017. Assuming a hypothetical stock price of $18.68 per share of Radian Group common stock (which was the high price on July 23, 2015) during the term of the ASR program, we expect the capital-strengthening transactions listed above to result in a net increase in diluted shares outstanding of less than 1.5%. This estimated net impact reflects the fact that a portion of the dilution for the incremental shares issued related to the Convertible Senior Notes due 2017 has been included in the calculations of diluted shares outstanding for prior periods in accordance with GAAP.

Following the purchases of a portion of the Convertible Senior Notes due 2017, approximately $60.9 million of the principal amount of the Convertible Senior Notes due 2017 remain outstanding.

Sale of Radian Asset Assurance. On April 1, 2015, Radian Guaranty completed the previously disclosed sale of 100% of the issued and outstanding shares of Radian Asset Assurance to Assured, pursuant to the Radian Asset Assurance Stock Purchase Agreement. See Note 2 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information related to discontinued operations.

Final PMIERs. On April 17, 2015, the FHFA issued the final PMIERs, setting forth revised requirements for private mortgage insurers, including Radian Guaranty, to remain eligible insurers of loans purchased by the GSEs. The PMIERs were further updated on June 30, 2015 to increase the amount of Available Assets required for loans originated on or after January 1, 2016 that are insured under lender-paid mortgage insurance policies not subject to automatic termination. Once they become effective for existing eligible mortgage insurers on December 31, 2015, the PMIERs Financial Requirements will replace the capital adequacy standards under the current GSE eligibility requirements. See Note 1 of Notes to Unaudited Condensed Consolidated Financial Statements for more information regarding the PMIERs.

Based on our current estimates of Radian Guaranty’s Available Assets and Minimum Required Assets as of June 30, 2015, we expect that Radian Guaranty will have the ability to immediately comply with the PMIERs Financial Requirements through one or more future contributions of a portion of our holding company liquidity to Radian Guaranty and its affiliated reinsurers. See Liquidity and Capital Resources—Radian Group—Short-Term Liquidity Needs for additional information.

The implementation of the final PMIERs (as updated on June 30, 2015) will: (1) increase the amount of capital that Radian Guaranty is required to hold, and therefore, reduce our current returns on subsidiary capital; (2) potentially impact the type of business that Radian Guaranty is willing to write; (3) impose extensive and more stringent operational requirements in areas such as claim processing, loss mitigation, document retention, underwriting, quality control, reporting and monitoring, among others, that may result in additional costs to achieve and maintain compliance; and (4) require the consent of the GSEs for Radian Guaranty to take certain actions such as paying dividends, entering into various intercompany agreements, and commuting or reinsuring risk, among others.

Services. During the first quarter of 2015, Clayton acquired Red Bell, a real estate brokerage company. See Notes 1 and 6 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding this acquisition.

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BofA Settlement Agreement. Implementation of the BofA Settlement Agreement commenced on February 1, 2015 for Subject Loans held in portfolio by the Insureds or purchased by the GSEs as of that date. Approximately 12% of the Subject Loans are neither held in portfolio by the Insureds nor owned by the GSEs, and require the consent of certain other investors for these loans to be included in the BofA Settlement Agreement, except with respect to certain limited rights of cancellation. The deadline for such consent has been extended to August 15, 2015. See Note 10 of Notes to Consolidated Financial Statements in our 2014 Form 10-K for additional information about the BofA Settlement Agreement.

Key Factors Affecting Our Results

Key factors affecting our results are discussed in our 2014 Form 10-K. The following information provides an update to certain information that was previously provided.

Financial Guaranty and Discontinued Operations

Radian Asset Assurance Stock Purchase Agreement. Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. As a result, until the April 1, 2015 sale date, the operating results of Radian Asset Assurance continued to be classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. Previously, Radian Asset Assurance had represented substantially all of the financial guaranty segment; therefore, we no longer report a financial guaranty business segment. Prior periods have been revised to conform to the current period presentation for these changes.

Radian Asset Assurance provided direct insurance and reinsurance on credit-based risks. The assets and liabilities associated with Radian Asset Assurance historically were a source of significant volatility to Radian’s results of operations, due to various factors including fluctuations in fair value and credit risk. Since the purchase price was not subject to adjustment between December 31, 2014 and the closing date for the impact of: (i) Radian Asset Assurance’s results of operations; (ii) changes in valuation; or (iii) market conditions, the after-tax impact of such changes reflected in income (loss) from operations of businesses held for sale were substantially offset by the resulting change in loss on classification as held for sale. Investment gains previously deferred and recorded in accumulated other comprehensive income were recognized as a result of the completion of the sale of Radian Asset Assurance to Assured on April 1, 2015.

For additional information related to discontinued operations, see Note 2 of Notes to Unaudited Condensed Consolidated Financial Statements.

Results of Operations—Consolidated

Radian Group serves as the holding company for our operating subsidiaries and does not have any significant operations of its own. Our consolidated operating results for the three and six months ended June 30, 2015 primarily reflect the financial results and performance of our two business segments—Mortgage Insurance and Services. See “—Results of Operations—Mortgage Insurance” and “—Results of Operations—Services” for the operating results of these business segments for the three and six months ended June 30, 2015.

In addition to the results of our operating segments, pretax income (loss) is also affected by those factors described in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—“Key Factors Affecting Our Results” in our 2014 Form 10-K, and updated by “—Key Factors Affecting Our Results” above. For more information regarding items that are excluded from the operating results of our operating segments, see “—Use of Non-GAAP Financial Measure” below.

We allocate to our Mortgage Insurance segment: (i) corporate expenses based on an allocated percentage of time spent on the Mortgage Insurance segment; (ii) all corporate cash and investments; (iii) all interest expense except for interest expense related to the Senior Notes due 2019; and (iv) for periods prior to the April 1, 2015 sale of Radian Asset Assurance, corporate income and expenses that were previously allocated to our financial guaranty segment and were not allocated to discontinued operations.

We allocate to our Services segment: (i) corporate expenses based on an allocated percentage of time spent on the Services segment; and (ii) all interest expense related to the Senior Notes due 2019, the proceeds of which were used to fund our acquisition of Clayton. No corporate cash or investments are allocated to the Services segment. We have included Clayton’s results of operations from the June 30, 2014 date of acquisition.

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Effective with the fourth quarter of 2014, our Services segment undertook the management responsibilities of certain additional loan servicer surveillance functions that were previously considered part of our Mortgage Insurance segment. As a result, these services and activities are now reported in our Services segment for all periods presented.

The following table highlights selected information related to our consolidated results of operations for the three and six months ended June 30, 2015 and 2014:

						$ Change								$ Change
	Three Months Ended June 30,					Favorable (Unfavorable)			Six Months Ended June 30,					Favorable (Unfavorable)
($ in millions)	2015		2014			2015 vs. 2014			2015		2014			2015 vs. 2014
Net income from continuing operations	$	45.2	$	103.5		$	(58.3	)	$	136.9	$	249.5		$	(112.6	)
Income from discontinued operations, net of tax	4.9		71.3			(66.4		)	5.4		128.1			(122.7		)
Net income	50.1		174.8			(124.7		)	142.3		377.6			(235.3		)
Net premiums earned—insurance	237.4		203.6			33.8			462.0		402.4			59.6
Services revenue	43.5		—			43.5			74.1		—			74.1
Net investment income	19.3		16.7			2.6			36.6		32.0			4.6
Net gains on investments and other financial instruments	28.4		25.3			3.1			45.2		68.3			(23.1		)
Provision for losses	32.6		64.6			32.0			77.6		114.3			36.7
Direct cost of services	23.5		—			(23.5		)	42.8		—			(42.8		)
Other operating expenses	67.7		60.8			(6.9		)	121.5		115.3			(6.2		)
Interest expense	24.5		22.3			(2.2		)	48.9		42.3			(6.6		)
Loss on induced conversion and debt extinguishment	91.9		—			(91.9		)	91.9		—			(91.9		)
Amortization and impairment of intangible assets	3.3		—			(3.3		)	6.3		—			(6.3		)
Income tax provision (benefit)	34.8		(10.7		)	(45.5		)	80.5		(29.5		)	(110.0		)
Adjusted pretax operating income (1)	147.3		74.1			73.2			271.2		158.1			113.1

________________________

(1) See “—Use of Non-GAAP Financial Measure” below.

Net Income from Continuing Operations. As discussed in more detail below, our net income from continuing operations for the three and six months ended June 30, 2015 compared to the same periods in 2014 was reduced by a loss on induced conversion and debt extinguishment. For the six months ended June 30, 2015, we also had lower net gains on investments and other financial instruments, compared to the same period in 2014. We had an income tax provision in 2015, compared to an income tax benefit in 2014, subsequent to the reversal of substantially all of our deferred tax valuation allowance in the fourth quarter of 2014. See “—Results of Operations—Mortgage Insurance” and “—Results of Operations—Services” for more information on our segment results.

Income from Discontinued Operations, Net of Tax. Radian completed the sale of Radian Asset Assurance to Assured on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement. As a result, until the April 1, 2015 sale date, the operating results of Radian Asset Assurance continued to be classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. The divestiture of our financial guaranty business was part of Radian’s strategy to focus its business on the mortgage and real estate markets and to comply with the PMIERs.

The income or loss from discontinued operations consists of three components: (i) loss on classification as held for sale; (ii) income from operations of businesses held for sale; and (iii) income tax provision. The assets and liabilities associated with the discontinued operations historically were a source of significant volatility to Radian’s results of operations, due to various factors including fluctuations in fair value and credit risk. Since the purchase price was not subject to adjustment between December 31, 2014 and the closing date for the impact of: (i) Radian Asset Assurance’s results of operations; (ii) changes in valuation; or (iii) market conditions, the after-tax impact of such changes reflected in income (loss) from operations of businesses held for sale were substantially offset by the resulting change in loss on classification as held for sale.

We recorded net income from discontinued operations of $5.4 million in the first six months of 2015, consisting primarily of the recognition of investment gains previously deferred and recorded in accumulated other comprehensive income and recognized as a result of the completion of the sale of Radian Asset Assurance to Assured on April 1, 2015, as well as adjustments to estimated transaction costs and taxes. No general corporate overhead or interest expense was allocated to discontinued operations.

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For additional information related to discontinued operations, see Note 2 of Notes to Unaudited Condensed Consolidated Financial Statements.

Services Revenue and Direct Cost of Services. For the three and six months ended June 30, 2015, services revenue and direct cost of services represent amounts related to our Services segment. See “—Results of Operations—Services” below for more information.

Net Investment Income. For the three and six months ended June 30, 2015, net investment income increased compared to the same periods in 2014, primarily due to increases in dividend income and in portfolio yields. Our current

allocation to short-term and short duration investments remains high while proceeds from the sale of our financial guaranty business are being re-invested to support future capital contributions from Radian Group to Radian Guaranty for compliance with the PMIERs Financial Requirements.

Net Gains on Investments and Other Financial Instruments. The components of the net gains on investments and other financial instruments for the periods indicated are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2015			2014			2015			2014
Net unrealized (losses) gains related to change in fair value of trading securities and other investments	$	(31.6	)	$	29.0		$	(10.9	)	$	76.6
Net realized gains (losses) on sales	60.4			(0.8		)	55.9			(5.1		)
Net (losses) gains on other financial instruments	(0.4		)	(2.9		)	0.2			(3.2		)
Net gains on investments and other financial instruments	$	28.4		$	25.3		$	45.2		$	68.3

During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $68.7 million.

Other Operating Expenses. Other operating expenses for the three and six months ended June 30, 2015, as compared to the same periods in 2014, reflect an increase due to the acquisition of Clayton in June 2014, partially offset by a reduction in the impact of the estimated fair value of cash-settled long-term equity-based incentive awards that are valued relative to Radian Group’s common stock price. Substantially all of these awards vested in June 2015. Therefore, although these awards have produced significant volatility due to their valuation relative to Radian Group’s common stock price, we do not expect the expense volatility from these awards in the future.

Interest Expense. In May 2014, we issued $300 million principal amount of 5.500% Senior Notes due June 2019, which resulted in increased interest expense for the three and six months ended June 30, 2015, compared to the same periods in 2014. See Note 10 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

Loss on Induced Conversion and Debt Extinguishment. Our June 2015 purchases of Convertible Senior Notes due 2017 resulted in a loss on induced conversion and debt extinguishment of approximately $91.9 million in the second quarter of 2015, consisting of: (i) an inducement expense of approximately $35.5 million, representing the excess of the fair value of the total consideration delivered for the purchases of the convertible notes over the fair value of securities issuable pursuant to the original conversion terms; (ii) a loss on extinguishment of debt of approximately $52.3 million, representing the excess of the fair value over the carrying amount of the notes; and (iii) expenses totaling $4.1 million both for transaction costs on the conversion and for the remaining unamortized debt issuance costs on the purchased Convertible Senior Notes due 2017.

Amortization and Impairment of Intangible Assets. The amortization and impairment of intangible assets for the three and six months ended June 30, 2015 primarily reflects the amortization of intangible assets acquired as part of the Clayton acquisition.

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Income Tax Provision (Benefit). The effective tax rate from continuing operations was 43.5% and 37.0% for the three and six months ended June 30, 2015, respectively, compared to (11.5)% and (13.4)% for the three and six months ended June 30, 2014. The change from our statutory tax rate of 35% for the three and six months ended June 30, 2015 was primarily due to the impact of the non-deductible portion of the premium associated with the purchases of our Convertible Senior Notes due 2017 and the impact of state and local income taxes. The primary change from the statutory tax rate for the six months ended June 30, 2015 also included the impact of the accounting standard regarding the accounting for uncertainty of income taxes. The change from our statutory tax rate of 35% for the three and six months ended June 30, 2014 was primarily due to changes in our overall valuation allowance against our deferred tax assets. Additionally, the three-month period ended June 30, 2014 was impacted by adjustments related to non-deductible compensation, and the six-month period ended June 30, 2014 reflects the impact of the accounting standard regarding the accounting for uncertainty of income taxes. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

Use of Non-GAAP Financial Measure. In addition to the traditional GAAP financial measures, we have presented a non-GAAP financial measure for the consolidated company, “adjusted pretax operating income (loss),” among our key performance indicators to evaluate our fundamental financial performance. This non-GAAP financial measure aligns with the way the Company’s business performance is evaluated by both management and Radian Group’s board of directors. This measure has been established in order to increase transparency for the purposes of evaluating our core operating trends and enabling more meaningful comparisons with our peers. Although on a consolidated basis “adjusted pretax operating income (loss)” is a non-GAAP financial measure, we believe this measure aids in understanding the underlying performance of our operations. Our senior management, including our Chief Executive Officer (the Company’s chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of the Company’s business segments and to allocate resources to the segments.

Adjusted pretax operating income (loss) adjusts GAAP pretax income (loss) from continuing operations to remove the effects of: net gains (losses) on investments and other financial instruments; loss on induced conversion and debt extinguishment; acquisition-related expenses; amortization and impairment of intangible assets; and net impairment losses recognized in earnings.

Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (1) not viewed as part of the operating performance of our primary activities; or (2) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below.

(1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are classified as trading. These valuation adjustments may not necessarily result in economic gains or losses.

Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). However, we include the change in expected economic loss or recovery associated with our consolidated VIEs, if any, in the calculation of adjusted pretax operating income (loss).

(2) Loss on induced conversion and debt extinguishment. Gains or losses on early extinguishment of debt or losses incurred to purchase our convertible debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial and capital positions; therefore, these activities are not viewed as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss).

(3) Acquisition-related expenses. Acquisition-related expenses represent the costs incurred to effect an acquisition of a business (i.e., a business combination). Because we pursue acquisitions on a strategic and selective basis and not in the ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business activity. Therefore, we do not consider these expenses to be part of our operating performance and they are excluded from our calculation of adjusted pretax operating income (loss).

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(4) Amortization and impairment of intangible assets. Amortization of intangible assets represents the periodic expense required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite useful life are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. These charges are not viewed as part of the operating performance of our primary activities and therefore are excluded from our calculation of adjusted pretax operating income (loss).

(5) Net impairment losses recognized in earnings. The recognition of net impairment losses on investments can vary significantly in both size and timing, depending on market credit cycles. We do not view these impairment losses to be indicative of our fundamental operating activities. Therefore, whenever these losses occur, we exclude them from our calculation of adjusted pretax operating income (loss).

Total adjusted pretax operating income (loss) is not a measure of total profitability, and therefore should not be viewed as a substitute for GAAP pretax income (loss) from continuing operations. Our definition of adjusted pretax operating income (loss) may not be comparable to similarly-named measures reported by other companies.

The following table provides a reconciliation of our non-GAAP financial measure for the consolidated company, adjusted pretax operating income, to the most comparable GAAP measure, pretax income from continuing operations:

Reconciliation of Consolidated Non-GAAP Financial Measure
	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Adjusted pretax operating income (loss):
Mortgage Insurance (1)	$	145,426		$	74,630		$	271,318		$	159,349
Services	1,834			(523		)	(157		)	(1,252		)
Total adjusted pretax operating income	147,260			74,107			271,161			158,097
Net gains on investments and other financial instruments (2)	28,448			25,512			45,227			68,619
Loss on induced conversion and debt extinguishment	(91,876		)	—			(91,876		)	—
Acquisition-related expenses	(567		)	(6,732		)	(774		)	(6,732		)
Amortization and impairment of intangible assets	(3,281		)	—			(6,304		)	—
Consolidated pretax income from continuing operations	$	79,984		$	92,887		$	217,434		$	219,984

________________________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment. These amounts represent items that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations. See Note 3 of Notes to Unaudited Condensed Consolidated Financial Statements.

(2) The change in expected economic loss or recovery associated with our previously-owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains on investments and other financial instruments has been adjusted by $0.2 million and $0.3 million for the three and six months ended June 30, 2014 to reverse this item.

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Results of Operations—Mortgage Insurance

Three and Six Months Ended June 30, 2015 Compared to Three and Six Months Ended June 30, 2014

The following table summarizes our Mortgage Insurance segment’s results of operations for the three and six months ended June 30, 2015 and 2014:

					$ Change							$ Change
	Three Months Ended June 30,				Favorable (Unfavorable)			Six Months Ended June 30,				Favorable (Unfavorable)
($ in millions)	2015		2014		2015 vs. 2014			2015		2014		2015 vs. 2014
Adjusted pretax operating income (1)	$	145.4	$	74.6	$	70.8		$	271.3	$	159.3	$	112.0
Net premiums written—insurance	251.1		221.9		29.2			493.0		434.9		58.1
Net premiums earned—insurance	237.4		203.6		33.8			462.0		402.4		59.6
Net investment income	19.3		16.7		2.6			36.6		32.0		4.6
Provision for losses	31.6		64.6		33.0			77.5		114.3		36.8
Other operating expenses	54.4		53.4		(1.0		)	98.2		107.0		8.8
Interest expense	20.1		22.3		2.2			40.0		42.3		2.3

________________________

(1) Our senior management uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of the Company’s business segments.

Adjusted Pretax Operating Income. Our Mortgage Insurance segment’s adjusted pretax operating income increased significantly for the three and six months ended June 30, 2015 compared to the comparable periods in 2014, primarily reflecting: (i) an increase in net premiums earned; and (ii) a reduction in provision for losses, as explained in more detail below.

NIW, IIF, RIF

A key component of our current business strategy is to grow our mortgage insurance business by writing insurance on high-quality mortgages in the U.S. Consistent with this objective, we wrote $11.8 billion and $21.1 billion of primary new mortgage insurance in the three and six months ended June 30, 2015, respectively, compared to $9.3 billion and $16.1 billion in the three and six months ended June 30, 2014, respectively.

The increase in NIW of more than 25% for the three and six months ended June 30, 2015 compared to the three and six months ended June 30, 2014 is primarily attributable to an increase in mortgage originations overall, as well as originations with private mortgage insurance. During this time period, recovery in wage and job growth supported increased home purchase mortgage volume, and low interest rates continued to drive refinance activity at higher levels than in the comparable periods of 2014. At the same time, the penetration rates of both private mortgage insurers and the FHA in the overall insured mortgage market increased, resulting in a mortgage insurance market that is larger for the six months ended June 30, 2015 than for the same period in 2014. In January 2015, the FHA reduced its annual mortgage insurance premium by 50 basis points to approximately 85 basis points per year. The FHA’s upfront mortgage insurance premium was not changed. The FHA reduction on annual premiums may impact our ability to compete with the FHA on certain high LTV loans to borrowers with FICO scores below 720. While the overall mortgage insurance market has increased during the first six months of 2015, the FHA’s market share has increased relative to the aggregate market share of private mortgage insurers. While it remains difficult to project future NIW, based on our growth in NIW during the first half of 2015 and current mortgage origination projections from the Mortgage Bankers Association and other sources, we continue to expect that our new business volume for 2015 will exceed our 2014 level of $37.3 billion.

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Since 2009, virtually all of our new mortgage insurance business production has been prime business. In addition, FICO scores for the borrowers of these insured mortgages are higher, and the average LTV on these mortgages is lower compared to mortgages in our Legacy Portfolio. Our portfolio of business written since 2009 has been steadily increasing in proportion to our total primary RIF. As of June 30, 2015, our 2009 through 2015 portfolios accounted for approximately 72% of our total primary RIF, compared to 69% at December 31, 2014. The loans from our 2009 and later origination years possess significantly improved credit characteristics compared to our Legacy Portfolio. The growth of our portfolio written beginning in 2009, together with continued improvement in the portfolio as a result of HARP refinancings (discussed below), among other things, has contributed to the significant improvement in the credit quality of our overall mortgage insurance portfolio. Because our expected future losses on our mortgage insurance portfolio written since 2009 are significantly lower than those experienced on our Legacy Portfolio, the changing composition of our overall mortgage insurance portfolio has led to improvements in our Mortgage Insurance segment’s operating profitability.

In 2009, the GSEs began offering the Home Affordable Refinance Program (“HARP”), which allows a borrower who is not delinquent to refinance a mortgage if the borrower has been unable to take advantage of lower interest rates because the borrower’s home has decreased in value. We exclude HARP loans from our NIW for the period in which the refinance occurs. During the six months ended June 30, 2015, new HARP loans accounted for $0.5 billion of newly refinanced loans that were not included in Radian Guaranty’s NIW for the period, compared to $1.1 billion for the same period of 2014.

The following tables provide selected information as of and for the periods indicated related to mortgage insurance NIW, RIF and IIF. Primary RIF and IIF amounts at June 30, 2015 include $378 million and $1.5 billion, respectively, related to loans that are subject to the Freddie Mac Agreement. Although we no longer have future claim liability on these loans, we continue to receive premiums on the related loans and the insurance remains in force; therefore, these loans are included in our primary RIF and IIF.

	Three Months Ended June 30,				Six Months Ended June 30,
($ in millions)	2015		2014		2015		2014
Total Primary NIW	$	11,751	$	9,322	$	21,136	$	16,130

The level of our refinance originations has increased and the purchase origination volume as a percentage of our total NIW has decreased during the three and six months ended June 30, 2015 compared to the same periods of 2014. Because purchase borrowers tend to have lower FICO scores and higher LTV ratios than refinancings, the FICO score distribution of our NIW has generally remained heavily concentrated in relatively higher level FICO scores and the LTV distribution of our NIW has generally become more concentrated in relatively lower LTV categories.

	Three Months Ended June 30,								Six Months Ended June 30,
($ in millions)	2015				2014				2015				2014
Total primary NIW by FICO Score
>=740	$	7,405	63.0	%	$	5,769	61.9	%	$	13,373	63.3	%	$	10,114	62.7	%
680-739	3,615		30.8		2,927		31.4		6,460		30.5		4,968		30.8
620-679	731		6.2		626		6.7		1,303		6.2		1,048		6.5
Total Primary	$	11,751	100.0	%	$	9,322	100.0	%	$	21,136	100.0	%	$	16,130	100.0	%

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	Three Months Ended June 30,						Six Months Ended June 30,
($ in millions)	2015			2014			2015			2014
Percentage of primary NIW
Monthly premiums	68		%	76		%	66		%	75		%
Single premiums	32		%	24		%	34		%	25		%
Refinances	23		%	13		%	27		%	15		%
LTV
95.01% and above	3.2		%	0.2		%	2.5		%	0.5		%
90.01% to 95.00%	49.4		%	53.9		%	49.0		%	53.0		%
85.01% to 90.00%	34.0		%	34.5		%	33.7		%	34.5		%
80.01% to 85.00%	13.4		%	11.4		%	14.8		%	12.0		%
Primary risk written	$	2,963		$	2,378		$	5,278		$	4,100

($ in millions)	June 30, 2015					December 31, 2014				June 30, 2014
Primary IIF
Flow	$	164,137	95.0	%		$	162,302	94.5	%	$	155,604	94.3	%
Structured	8,555		5.0			9,508		5.5		9,385		5.7
Total Primary	$	172,692	100.0	%		$	171,810	100.0	%	$	164,989	100.0	%
Prime	$	161,397	93.4	%		$	159,647	92.9	%	$	151,865	92.0	%
Alt-A	6,857		4.0			7,412		4.3		8,014		4.9
A minus and below	4,438		2.6			4,751		2.8		5,110		3.1
Total Primary	$	172,692	100.0	%		$	171,810	100.0	%	$	164,989	100.0	%
Persistency (12 months ended) (1)			80.1	%	(2)			84.2	%			83.9	%

_____________________

(1) Effective March 31, 2015, we refined our persistency calculation to incorporate loan level detail rather than aggregated portfolio data. Prior periods have been recalculated and reflect the current calculation methodology.

(2) Persistency decreased primarily as a result of the cancellations of Single Premium policies due to prepayments that servicers had not previously reported to Radian. See Net Premiums Written and Earned below for the corresponding impact on premiums earned.

($ in millions)	June 30, 2015				December 31, 2014				June 30, 2014
Primary RIF
Flow	$	41,706	95.5	%	$	41,071	95.0	%	$	39,139	94.8	%
Structured	1,957		4.5		2,168		5.0		2,131		5.2
Total Primary	$	43,663	100.0	%	$	43,239	100.0	%	$	41,270	100.0	%
Prime	$	40,963	93.8	%	$	40,326	93.3	%	$	38,124	92.4	%
Alt-A	1,588		3.6		1,720		4.0		1,863		4.5
A minus and below	1,112		2.6		1,193		2.7		1,283		3.1
Total Primary	$	43,663	100.0	%	$	43,239	100.0	%	$	41,270	100.0	%

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($ in millions)	June 30, 2015				December 31, 2014				June 30, 2014
Total primary RIF by FICO score
>=740	$	24,778	56.7	%	$	24,511	56.7	%	$	23,209	56.2	%
680-739	13,131		30.1		12,817		29.6		12,078		29.3
620-679	4,880		11.2		4,973		11.6		4,974		12.1
<=619	874		2.0		938		2.1		1,009		2.4
Total Primary RIF	$	43,663	100.0	%	$	43,239	100.0	%	$	41,270	100.0	%
Primary RIF on defaulted loans	$	1,753			$	2,089			$	2,270

($ in millions)	June 30, 2015					December 31, 2014					June 30, 2014
Percentage of primary RIF
Refinances	25		%			26		%			27		%
Loan Type:
Fixed	95.7		%			95.2		%			94.6		%
Adjustable rate mortgages
Less than five years	1.5		%			1.7		%			2.0		%
Five years and longer	2.8		%			3.1		%			3.3		%
Total primary RIF by LTV
95.01% and above	$	3,340		7.6	%	$	3,547		8.2	%	$	3,835		9.3	%
90.01% to 95.00%	21,398			49.0		20,521			47.5		18,637			45.1
85.01% to 90.00%	15,103			34.6		15,307			35.4		14,963			36.3
85.00% and below	3,822			8.8		3,864			8.9		3,835			9.3
Total Primary	$	43,663		100.0	%	$	43,239		100.0	%	$	41,270		100.0	%

($ in millions)	June 30, 2015				December 31, 2014				June 30, 2014
Total primary RIF by policy year
2005 and prior	$	3,189	7.3	%	$	3,540	8.2	%	$	3,927	9.5	%
2006	1,841		4.2		2,001		4.6		2,157		5.2
2007	4,188		9.6		4,592		10.6		4,890		11.8
2008	3,065		7.0		3,394		7.9		3,660		8.9
2009	884		2.0		1,081		2.5		1,267		3.1
2010	741		1.7		925		2.1		1,068		2.6
2011	1,495		3.5		1,809		4.2		2,051		5.0
2012	5,688		13.0		6,534		15.1		7,229		17.5
2013	9,071		20.8		10,265		23.8		10,965		26.6
2014	8,291		19.0		9,098		21.0		4,056		9.8
2015	5,210		11.9		—		—		—		—
Total Primary	$	43,663	100.0	%	$	43,239	100.0	%	$	41,270	100.0	%

Net Premiums Written and Earned.  Net premiums written increased for the three and six months ended June 30, 2015, compared to the same periods of 2014, primarily due to an increase in NIW in the three and six months ended June 30, 2015.

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Net premiums earned increased for the three and six months ended June 30, 2015, compared to the same periods of 2014, primarily as a result of the impact of the acceleration of the recognition of premiums on Single Premium Policies that were cancelled during the 2015 periods due to: (i) increased refinance activity in 2015; and (ii) prepayments that servicers had not previously reported to Radian. For the three and six months ended June 30, 2015 compared to the three and six months ended June 30, 2014, the increase in premiums earned on Single Premium Policies was approximately $24.0 million and $43.4 million, respectively, in large part due to this acceleration. Also impacting premiums in both periods of 2015 compared to 2014 was an increase in premiums due to decreased reinsurance cessions related to the runoff of captive reinsurance and a decline in balances ceded under the QSR Transactions. In addition, our results for the three and six months ended June 30, 2015 include an accrual of $5.8 million for a potential profit commission, based on experience to date for the Second QSR Transaction, because we expect to exercise our option to recapture half of the ceded risk on December 31, 2015. Net premiums earned in both periods of 2015 also reflect our increased level of IIF.

Our expected rate of return on our Single Premium Policies is lower than on our Monthly Premium Policies. Assuming all other factors remain constant, if loans prepay earlier than expected, then our profitability on Single Premium Policies will be higher than anticipated. If loans are repaid later than expected, however, our profitability on Single Premium Policies will be lower than anticipated. Prepayment speeds, which are impacted by changes in interest rates, among other factors, impact the expected profitability of our Monthly Premium Policies in the opposite direction. For our Monthly Premium Policies, earlier than anticipated prepayments reduce profitability. As a result, the ultimate profitability of our business is affected by the impact of mortgage prepayment speeds on the mix of business we write. Because prepayment speeds are difficult to project, our strategy has been to write a mix of Single Premium Policies and Monthly Premium Policies, which we believe balances the overall impact on our results if actual prepayment speeds are significantly different from expectations. During the remainder of 2015, we expect our percentage of Single Premium Policy NIW to decrease from our level during the first half of 2015, based on a reduction in the level of refinanced mortgages, competitive factors and the mix of business that our mortgage originator customers generate. See Overview—Operating Environment and Business Strategy for more information.

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Throughout this report, unless otherwise noted, RIF includes the amount ceded through reinsurance. The following table provides additional information about our QSR Transactions and our captive transactions.

	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2015			2014			2015			2014
Initial QSR Transaction
Ceded premiums written	$	3,822		$	5,046		$	7,889		$	10,350
% of premiums written	1.5		%	2.1		%	1.5		%	2.2		%
Ceded premiums earned	$	6,424		$	6,803		$	12,443		$	13,610
% of total premiums	2.6		%	3.1		%	2.5		%	3.1		%
Ceding commissions written	$	828		$	1,262		$	1,708		$	2,588
RIF included in Initial QSR Transaction (1)	$	954,673		$	1,234,975
Second QSR Transaction
Ceded premiums written	$	395		$	8,072		$	6,923		$	15,365
% of premiums written	0.2		%	3.4		%	1.4		%	3.3		%
Ceded premiums earned	$	3,039		$	7,197		$	11,808		$	13,782
% of total premiums	1.2		%	3.3		%	2.4		%	3.2		%
Ceding commissions written	$	2,154		$	2,825		$	4,439		$	5,378
RIF included in Second QSR Transaction (1)	$	1,440,312		$	1,447,088
First-Lien Captives
Premiums earned ceded to captives	$	2,700		$	3,314		$	5,285		$	6,822
% of total premiums	1.1		%	1.5		%	1.1		%	1.6		%
IIF subject to captives (2)	2.4		%	3.3		%
RIF subject to captives (3)	2.2		%	3.1		%

__________________

(1) RIF ceded under QSR Transactions and included in primary RIF.

(2) IIF on captives as a percentage of total IIF.

(3) RIF on captives as a percentage of total RIF.

Provision for Losses. Our mortgage insurance provision for losses decreased for the three and six months ended June 30, 2015, compared to the same periods of 2014. The following table details the financial impact of the significant components of our provision for losses for the periods indicated:        

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2015			2014			2015			2014
New defaults	$	59.8		$	74.4		$	102.4		$	129.2
Existing defaults, Second-liens, LAE and other (1)	(28.2		)	(9.8		)	(24.9		)	(14.9		)
Provision for losses	$	31.6		$	64.6		$	77.5		$	114.3

_____________________

(1) Represents the provision for losses attributable to loans that were in default as of the beginning of each period indicated, including: (a) the change in reserves for loans that were in default status (including pending claims) as of both the beginning and end of each period indicated; (b) the net impact to provision for losses from loans that were in default as of the beginning of each period indicated but were either cured, prepaid, or resulted in a paid claim or a Rescission or Claim Denial during the period indicated; (c) the impact to our IBNR reserve during the period related to changes in actual and estimated Reinstatements of previous Rescissions and Claim Denials, including those subject to the BofA Settlement Agreement; (d) Second-lien loss reserves and PDR; and (e) LAE and other loss reserves.

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Our mortgage insurance provision for losses for the three and six months ended June 30, 2015 decreased by $33.0 million and $36.8 million, respectively, as compared to the same periods in 2014. Reserves established for new default notices were the primary driver of our total incurred loss for the first six months of 2015. The impact to incurred losses from default notices reported in the first half of 2015 was partially mitigated by favorable reserve development on prior year defaults, which was driven primarily by a reduction in certain Default to Claim Rate assumptions based on observed trends of higher Cures than were previously estimated. We experienced similar favorable development related to incurred losses from prior year defaults during the first six months of 2014.

Our primary default rate at June 30, 2015 was 4.3% compared to 5.2% at December 31, 2014. Our primary defaulted inventory comprised 37,676 loans at June 30, 2015, compared to 45,319 loans at December 31, 2014, representing a 16.9%decrease. The reduction in our primary defaulted inventory is the result of the total number of defaulted loans: (1) that have cured; (2) for which claim payments have been made; and (3) that have resulted in net Rescissions and Claim Denials, collectively exceeding the total number of new defaults on insured loans. New primary defaults decreased by 13% and 14% for the three and six months ended June 30, 2015, respectively, compared to the same periods in 2014. Although significant uncertainty remains, we currently expect total new defaults for 2015 to continue to decrease as compared to 2014.

The following table shows the number of primary loans that we have insured, the number of loans in default and the percentage of loans in default as of the dates indicated:

	June 30, 2015		December 31, 2014		June 30, 2014
Default Statistics—Primary Insurance:
Total Primary Insurance
Prime
Number of insured loans	802,719		797,436		764,508
Number of loans in default	23,237		28,246		30,012
Percentage of loans in default	2.89	%	3.54	%	3.93	%
Alt-A
Number of insured loans	35,927		38,953		41,846
Number of loans in default	6,949		8,136		9,299
Percentage of loans in default	19.34	%	20.89	%	22.22	%
A minus and below
Number of insured loans	34,224		36,688		39,180
Number of loans in default	7,490		8,937		9,593
Percentage of loans in default	21.89	%	24.36	%	24.48	%
Total Primary
Number of insured loans	872,870		873,077		845,534
Number of loans in default (1)	37,676		45,319		48,904
Percentage of loans in default	4.32	%	5.19	%	5.78	%

______________________

(1) Excludes 3,246, 4,467 and 5,238 loans that are in default at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, that are subject to the Freddie Mac Agreement, and for which we no longer have claims exposure.

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The following table shows a rollforward of our primary loans in default:

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Beginning default inventory	40,440		53,119		45,319		60,909
Plus: New defaults (1)	10,006		11,454		20,259		23,567
Less: Cures (1)	9,591		10,930		21,180		24,575
Less: Claims paid (2) (3)	3,891		4,698		7,823		10,747
Less: Rescissions (4)	35		61		74		120
Less: Claim (Reinstatements) Denials (5)	(25	)	(16	)	(67	)	49
Less: Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement (6)	(722	)	(4	)	(1,108	)	81
Ending default inventory	37,676		48,904		37,676		48,904

__________________

(1) Amounts reflected are compiled monthly based on reports received from loan servicers. The number of new defaults and Cures presented includes the following monthly defaults that both defaulted and cured within the periods indicated:

	Three Months Ended June 30,		Six Months Ended June 30,
	2015	2014	2015	2014
Intra-period new defaults	3,877	4,271	12,010	13,382

(2) Includes those charged to a deductible or captive.

(3) Includes 1,315 and 2,790 claim payments related to the BofA Settlement Agreement for the three and six months ended June 30, 2015, respectively.

(4) Net of any previous Rescissions that were reinstated during the period. Such reinstated Rescissions may ultimately result in a paid claim.

(5) Net of any Claim Denials that were reinstated during the period. Such previously denied but reinstated claims are generally reviewed for possible Rescission prior to any claim payment.

(6) Includes Rescissions, Claim Denials and Reinstatements on the population of loans subject to the BofA Settlement Agreement. Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement prior to the February 1, 2015 Implementation Date represent such activities on loans that subsequently became subject to the BofA Settlement Agreement.

Our aggregate weighted average Default to Claim Rate assumption (net of Claim Denials and Rescissions) used in estimating our primary reserve for losses declined slightly to 50% (45% excluding pending claims) at June 30, 2015, compared to 52% at December 31, 2014. The change in our Default to Claim Rate resulted primarily from a decrease in the proportion of pending claims, which have higher Default to Claim Rates, and a decrease in the assumed Default to Claim Rate for new defaults, as described below. We develop our Default to Claim Rate estimates on defaulted loans based on models that use a variety of loan characteristics to determine the likelihood that a default will reach claim status. Our Default to Claim Rate estimates on defaulted loans are mainly developed based on the Stage of Default and Time in Default of the underlying defaulted loans, as measured by the progress toward foreclosure sale and the number of months in default. During the six months ended June 30, 2015, we reduced our gross Default to Claim Rate assumption for new primary defaults from 16% to 14% due tocontinued improvement in actual claim development trends. As of June 30, 2015, our gross Default to Claim Rates on our primary portfolio ranged from 14% for new defaults, to approximately 65% for defaults not in Foreclosure Stage, and 81% for Foreclosure Stage Defaults.

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The following tables show additional information about our primary loans in default as of the dates indicated:

	June 30, 2015
	Total			Foreclosure Stage Defaulted Loans	Cure % During the 2nd Quarter		Reserve for Losses		% of Reserve
($ in thousands)	#	%		#	%		$		%
Missed payments:
Three payments or less	9,668	25.7	%	184	33.3	%	$	117,029	12.0	%
Four to eleven payments	8,433	22.4		656	18.0		159,768		16.3
Twelve payments or more	15,725	41.7		3,416	4.8		508,581		51.9
Pending claims	3,850	10.2		N/A	1.2		194,114		19.8
Total	37,676	100.0	%	4,256			979,492		100.0	%
IBNR and other							125,038
LAE							48,141
Total primary reserve							$	1,152,671

Key Reserve Assumptions
Gross Default to Claim Rate %	Net Default to Claim Rate %	Severity %
54%	50%	105%

	December 31, 2014
	Total			Foreclosure Stage Defaulted Loans	Cure % During the 4th Quarter		Reserve for Losses		% of Reserve
($ in thousands)	#	%		#	%		$		%
Missed payments:
Three payments or less	11,192	24.7	%	174	30.6	%	$	142,503	11.9	%
Four to eleven payments	10,413	23.0		695	15.8		195,440		16.3
Twelve payments or more	18,071	39.9		3,984	3.9		593,466		49.5
Pending claims	5,643	12.4		N/A	0.8		266,826		22.3
Total	45,319	100.0	%	4,853			1,198,235		100.0	%
IBNR and other							223,114
LAE							56,164
Total primary reserve							$	1,477,513

Key Reserve Assumptions
Gross Default to Claim Rate %	Net Default to Claim Rate %	Severity %
57%	52%	104%

______________________

N/A – Not applicable

We considered the sensitivity of our loss reserve estimates at June 30, 2015 by assessing the potential changes resulting from a parallel shift in Claim Severity and Default to Claim Rate for primary loans. For example, assuming all other factors remain constant, for every one percentage point change in primary Claim Severity (which we estimate to be 105% of our risk exposure at June 30, 2015), we estimated that our total loss reserve would change by approximately $9 million at June 30, 2015. For every one percentage point change in our primary net Default to Claim Rate (which we estimate to be 50% at June 30, 2015, including our assumptions related to Rescissions and Claim Denials), we estimated a change of approximately $19 million in our primary loss reserve at June 30, 2015.

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Our net Default to Claim Rate and loss reserve estimate incorporate our future expectations with respect to future Claim Denials and Rescissions. These expectations are based on our recent experience with respect to the number of claims that have been denied due to the policyholder’s failure to submit sufficient documentation to perfect a claim within the time period permitted under our Master Policies and also our recent experience with respect to the number of insurance certificates that have been rescinded due to fraud, underwriter negligence or other factors. As of June 30, 2015, we have adjusted these estimates to reflect the expected impact of the BofA Settlement Agreement. See Note 9 of Notes to Unaudited Condensed Consolidated Financial Statements.

The following table illustrates the amount of First-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of any Reinstatements of previous Rescissions or Claim Denials, within each period. Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement represent such activities, prior to the February 1, 2015 Implementation Date, on loans that subsequently became subject to the BofA Settlement Agreement.

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2015			2014			2015			2014
Rescissions, net	$	3.4		$	7.6		$	7.2		$	14.0
Claim Denials, net	3.6			6.4			9.2			25.3
Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement	(47.1		)	(2.5		)	(71.2		)	0.5
Net First-lien claims submitted for payment that were (reinstated), rescinded or denied (1)	$	(40.1	)	$	11.5		$	(54.8	)	$	39.8

__________________

(1) Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured.

The following table illustrates the impact of estimated future Rescissions and Claim Denials (net of estimated Reinstatements) on our loss reserve estimates as of the dates indicated:

(In millions)	June 30, 2015		December 31, 2014		June 30, 2014
Decrease to our loss reserve due to estimated future Rescissions and Claim Denials	$	108	$	125	$	192

The impact to our reserve due to estimated future Rescissions and Claim Denials incorporates our expectations regarding the number of policies that we expect to be reinstated as a result of our claims rebuttal process (see below for more information). The level of Rescissions and Claim Denials has been declining in recent periods as our defaulted Legacy Portfolio continues to decline, and we expect this trend to continue.

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The table below shows details related to the number of rescinded policies and denied claims for primary loans, excluding loans subject to the Freddie Mac Agreement, for the periods indicated. Net Reinstatements (Rescissions) related to the BofA Settlement Agreement prior to the February 1, 2015 Implementation Date represent such activities on loans that subsequently became subject to the BofA Settlement Agreement.

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Rescinded policies:
Rescinded	(37	)	(78	)	(78	)	(154	)
Reinstated	2		17		4		34
Net Reinstatements (Rescissions) related to the BofA Settlement Agreement	114		(105	)	451		(227	)
Denied claims:
Denied	(277	)	(518	)	(581	)	(1,301	)
Reinstated	302		534		648		1,252
Net Reinstatements related to the BofA Settlement Agreement	608		109		657		146
Total Net Reinstatements (Rescissions and Claim Denials)	712		(41	)	1,101		(250	)

Our reported Rescission and Claim Denial activity in any given period is subject to challenge by our lender and servicer customers through our claims rebuttal process. In addition, we at times engage in discussions with our lender and servicer customers regarding our Loss Mitigation Activities. Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we consider our claim payments and our Rescissions, Claim Denials and Claim Curtailments to be resolved for financial reporting purposes. In accordance with the accounting standard regarding contingencies, we accrue for an estimated loss when we determine that the loss is probable and can be reasonably estimated.

On September 16, 2014, Radian Guaranty entered into the BofA Settlement Agreement in order to resolve various actual and potential claims or disputes related to the parties’ respective rights and duties as to mortgage insurance coverage on the Subject Loans. The consent of the GSEs required to implement the BofA Settlement Agreement was received in December 2014, and implementation of the agreement for Subject Loans owned by the GSEs or held in portfolio by the Insureds commenced on February 1, 2015.

Approximately 12% of the Subject Loans are neither held in portfolio by the Insureds nor owned by the GSEs, and require the consent of certain other investors for these loans to be included in the BofA Settlement Agreement, except with respect to certain limited rights of cancellation. See Note 9 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information about the BofA Settlement Agreement.

We expect that a portion of previous Rescissions will be reinstated and previous Claim Denials will be resubmitted with the required documentation and ultimately paid; therefore, we have incorporated this expectation into our IBNR reserve estimate. Our IBNR reserve estimate was $66.7 million and $163.6 million at June 30, 2015 and December 31, 2014, respectively. We began to implement the BofA Settlement Agreement in the first quarter of 2015, which resulted in a significant decrease in our IBNR reserve estimate at June 30, 2015 as compared to December 31, 2014, due to the reinstatement and payment during the period of certain previous Rescissions and Claim Denials on Subject Loans in accordance with the terms of the agreement. As of June 30, 2015, the IBNR reserve estimate of $66.7 million included approximately $46.9 million for loans subject to the BofA Settlement Agreement. This amount compares to approximately $133.0 million in IBNR reserves for loans subject to the BofA Settlement Agreement as of December 31, 2014.

The remaining IBNR reserve at June 30, 2015 included an estimate of future Reinstatements of previous Claim Denials, Rescissions and Claim Curtailments of $10.8 million, $0.6 million, and $2.2 million, respectively. These reserves relate to approximately $65.1 million of claims that were denied within the preceding 12 months, approximately $67.2 million of policies rescinded within the preceding 24 months, and approximately $28.3 million of Claim Curtailments within the preceding 24 months.

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The following table shows information regarding our reserve for losses as of the dates indicated:

(In thousands)	June 30, 2015		December 31, 2014
Reserve for losses by category:
Prime	$	562,918	$	700,174
Alt-A	256,854		292,293
A minus and below	148,043		179,103
IBNR and other	125,038		223,114
LAE	48,141		56,164
Reinsurance recoverable (1)	11,677		26,665
Total primary reserve	1,152,671		1,477,513
Pool	47,902		75,785
IBNR and other	891		1,775
LAE	2,353		3,542
Total pool reserve	51,146		81,102
Total First-lien reserve	1,203,817		1,558,615
Second-lien and other (2)	975		1,417
Total reserve for losses	$	1,204,792	$	1,560,032

__________________

(1) Primarily represents ceded losses on captive transactions and the QSR Transactions.

(2) Does not include Second-lien PDR.

Our primary reserve per default (calculated as primary reserve excluding IBNR and other divided by primary defaults) was $27,279 and $27,683 at June 30, 2015 and December 31, 2014, respectively.

Total mortgage insurance claims paid of $212.0 million and $419.1 million for the three and six months ended June 30, 2015, respectively, have decreased from claims paid of $240.3 million and $547.2 million for the three and six months ended June 30, 2014, respectively, primarily due to the overall decline in defaulted loans and ongoing reduction in pending claims. However, claims paid in the first half of 2015 are elevated as they include $174.6 million of the expected $250 million of claim payments associated with the BofA Settlement Agreement. We expect the remaining approximately $75 million of claim payments associated with the BofA Settlement Agreement to be paid by the end of 2015 and currently expect total claims paid to be between $600 million and $700 million in 2015, including the claims related to the BofA Settlement Agreement.

In addition, as part of our claims review process, we assess whether defaulted loans were serviced appropriately in accordance with our insurance policies and servicing guidelines. To the extent a servicer has failed to satisfy its servicing obligations, our policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel coverage or deny the claim. Claim Curtailments due to servicer noncompliance with our insurance policies and servicing guidelines impact the severity of our claim payments. Claim Curtailments due to servicer noncompliance with our insurance policies and servicing guidelines were approximately $4.0 million and $11.3 million for the three and six months ended June 30, 2015, respectively, compared to approximately $12.7 million and $26.8 million, for the three and six months ended June 30, 2014, respectively.

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The following table shows claims paid by product and average claim paid by product for the periods indicated:

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015			2014		2015			2014
Net claims paid (1):
Prime	$	83,489		$	159,335	$	159,675		$	354,781
Alt-A	23,260			37,368		43,259			83,961
A minus and below	14,965			26,675		30,106			60,268
Total primary claims paid	121,714			223,378		233,040			499,010
Pool	10,798			16,362		19,672			47,225
Second-lien and other	(53		)	511		(164		)	1,238
Subtotal	132,459			240,251		252,548			547,473
Impact of captive terminations	—			—		(12,000		)	(1,156		)
Impact of settlements	79,557			—		178,563			875
Total net claims paid	$	212,016		$	240,251	$	419,111		$	547,192
Average net claim paid (2):
Prime	$	48.1		$	46.3	$	46.3		$	45.1
Alt-A	59.5			55.9		56.8			55.6
A minus and below	40.1			37.8		38.4			37.4
Total average net primary claim paid	48.7			46.4		46.7			45.5
Pool	69.7			63.4		63.3			61.3
Second-lien and other	(3.5		)	16.5		(6.8		)	18.7
Total average net claim paid	$	49.6		$	47.0	$	47.4		$	46.3
Average direct primary claim paid (2) (3)	$	49.6		$	47.4	$	47.6		$	45.8
Average total direct claim paid (2) (3)	$	50.4		$	48.0	$	48.3		$	46.6

__________________

(1) Net of reinsurance recoveries.

(2) Calculated without giving effect to the impact of the termination of captive transactions and settlements.

(3) Before reinsurance recoveries.

Other Operating Expenses. Our other operating expenses for the three and six months ended June 30, 2015, compared to the same periods in 2014, reflect a reduction in the impact of changes in the estimated fair value of cash-settled long-term equity-based incentive awards that are valued, in large part, relative to the price of Radian Group common stock. Substantially all of these awards vested in June 2015. Therefore, although these awards have produced significant volatility in the past due to their valuation relative to Radian Group’s common stock price, now that substantially all of the awards have vested, this expense volatility is not expected in the future.

Operating expenses include $2.1 million for the six months ended June 30, 2015, and $4.4 million and $8.6 million for the three and six months ended June 30, 2014, respectively, as a result of the reallocation of financial guaranty segment expenses that were not allocated to discontinued operations.

Interest Expense. These amounts reflect the allocated portion of interest on Radian Group’s long-term debt, excluding the Senior Notes due 2019, which decreased in the three and six months ended June 30, 2015 compared to the same periods in 2014 as a result of the optional redemption of a portion of our notes in 2014. Interest expense allocated to the Mortgage Insurance segment also includes $9.9 million for the six months ended June 30, 2015, and $15.9 million and $30.5 million for the three and six months ended June 30, 2014, respectively, as a result of the reallocation of financial guaranty segment interest expense that was not allocated to discontinued operations.

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Results of Operations—Services

Three and Six Months Ended June 30, 2015 Compared to Three and Six Months Ended June 30, 2014

The following table summarizes our Services segment’s results of operations for the three and six months ended June 30, 2015 and 2014:

						$ Change									$ Change
	Three Months Ended June 30,					Favorable (Unfavorable)			Six Months Ended June 30,						Favorable (Unfavorable)
($ in millions)	2015		2014			2015 vs. 2014			2015			2014			2015 vs. 2014
Adjusted pretax operating income (loss) (1)	$	1.8	$	(0.5	)	$	2.3		$	(0.2	)	$	(1.3	)	$	1.1
Services revenue	44.6		—			44.6			76.1			—			76.1
Direct cost of services	25.5		—			(25.5		)	44.7			—			(44.7		)
Gross profit on services	19.1		—			19.1			31.4			—			31.4
Other operating expenses	12.8		0.6			(12.2		)	22.7			1.5			(21.2		)
Interest expense	4.4		—			(4.4		)	8.9			—			(8.9		)

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(1) Our senior management uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of the Company’s business segments.

The Services segment’s results primarily comprise the operations of Clayton from the June 30, 2014 date of acquisition. The Services segment is a fee-for-service business, with revenue primarily derived from: (i) loan review and due diligence services; (ii) surveillance services, including RMBS surveillance, loan servicer oversight, loan-level servicing compliance reviews and operational reviews of mortgage servicers and originators; (iii) valuation and component services providing outsourcing and technology solutions for the single family rental and residential real estate markets; (iv) REO asset management services; and (v) EuroRisk mortgage services in the United Kingdom and Europe. The top 10 customers of the Services segment generated approximately 54% of the services revenue for the six months endedJune 30, 2015. The largest single customer generated approximately 13% of the services revenue for the six months endedJune 30, 2015.

Direct cost of services primarily consists of employee compensation and related payroll benefits, and, to a lesser extent, other direct costs of providing services such as travel and related expenses incurred in providing client services and costs paid to outside vendors. Direct cost of services is primarily affected by the level of services being provided and, therefore, is correlated to the level of services revenue. For the three and six months ended June 30, 2015, our services revenues were $44.6 million and $76.1 million, respectively, and our gross profit on services represented approximately 43% and 41%, respectively, of our services revenues.

Other operating expenses primarily consist of compensation costs not classified as direct cost of services because they are related to employees, such as sales and corporate employees, who are not directly involved in providing client services. For both the three and six months ended June 30, 2015, compensation-related costs represented approximately 58% of the segment’s operating expenses. Other operating expenses also include other selling, general and administrative expenses, depreciation, and allocations of corporate general and administrative expenses. Other operating expenses for the three and six months ended June 30, 2015 include an allocation of corporate operating expenses of $1.3 million and $2.3 million, respectively.

For the three and six months ended June 30, 2015, interest expense represents all of the interest expense related to our Senior Notes due 2019, the proceeds of which were used to fund our acquisition of Clayton.

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Off-Balance Sheet Arrangements

There have been no material changes in the off-balance sheet arrangements specified in our 2014 Form 10-K.

Contractual Obligations and Commitments

There have been no material changes outside the ordinary course of business in our contractual obligations and commitments specified in our 2014 Form 10-K, except as follows:

• In June 2015, Radian Group issued $350 million aggregate principal amount of Senior Notes due 2020 and received net proceeds of approximately $344.3 million. See Note 10 of Notes to Unaudited Condensed Consolidated Financial Statements for further information.

• In June 2015 Radian Group entered into privately negotiated agreements with certain of the holders of a portion of its outstanding Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. Radian Group funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers approximately 28.4 million shares of Radian Group common stock. Following this action, approximately $60.9 million of the principal amount of the Convertible Senior Notes due 2017 remain outstanding. See Note 10 of Notes to Unaudited Condensed Consolidated Financial Statements for further information.

• On June 18, 2015, Radian Group entered into an ASR program to repurchase an aggregate of approximately $202 million of Radian Group common stock. During the three-month period ended June 30, 2015, 9.2 million initial shares were repurchased under this program. As of June 30, 2015, the total payment of $202 million pursuant to our ASR program has been funded. However, under this program, the total number of shares ultimately delivered to Radian Group will be based on the average of the daily volume-weighted average price of Radian Group common stock during the term of the transaction, less a negotiated discount and subject to certain other adjustments pursuant to the terms and conditions of the program. If the adjusted average price of Radian Group common stock during the term of the transaction is higher than the initial repurchase price, Radian Group may be required to make an adjustment payment, which it may make, at its election, in cash or in shares of Radian Group common stock. If an adjustment payment is required from the counterparty, the counterparty may be required to deliver to Radian Group additional shares of Radian Group common stock or, at our election under certain circumstances, a combination of Radian Group common stock and cash. Final settlement of the ASR program is expected to occur in October 2015, and may occur earlier at the option of the counterparty to the agreement.

Liquidity and Capital Resources

Radian Group—Short-Term Liquidity Needs

Radian Group serves as the holding company for our insurance and other subsidiaries and does not have any significant operations of its own. At June 30, 2015, Radian Group had immediately available, either directly or through an unregulated subsidiary, unrestricted cash and liquid investments of approximately $735 million, which excludes certain additional cash and liquid investments that have been advanced from our subsidiaries for corporate expenses and interest payments.

During the second quarter of 2015, Radian Group successfully completed a series of transactions for the purpose of strengthening its capital position, including to reduce its overall cost of capital and improve the maturity profile of its debt. This series of transactions had four components:

• the issuance of $350 million aggregate principal amount of Senior Notes due 2020 for net proceeds of approximately $344.3 million;

• the purchases of approximately $389.1 million aggregate principal amount of its Convertible Senior Notes due 2017, for a combination of approximately $126.8 million in cash and 28.4 million shares of Radian Group common stock;

• the termination of a corresponding portion of the capped call transactions related to the purchased Convertible Senior Notes due 2017, as a result of which we received consideration of 2.3 million shares of Radian Group common stock and $12.0 million in cash; and

• the entry into an ASR program to repurchase an aggregate of $202 million of Radian Group common stock, resulting in the repurchase of 9.2 million initial shares in June 2015.

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These transactions resulted in a combined net increase in holding company liquidity of $24.3 million. See Notes 10 and 16 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the individual transactions.

In addition, on April 1, 2015, upon completion of the sale of Radian Asset Assurance, our holding company liquidity increased by approximately $45 million due to the release of funds held in a separate escrow account.

Radian Group’s principal liquidity demands for the next 12 months are expected to include: (i) additional capital support for our mortgage insurance subsidiaries; (ii) the payment of corporate expenses; (iii) interest payments on our outstanding long-term debt; (iv) potential investments to support our strategy of growing our businesses; and (v) the payment of dividends on our common stock.

On a quarterly basis, we evaluate whether the conversion threshold requirements for our Convertible Senior Notes due 2017 and our Convertible Senior Notes due 2019 have been met. As of June 30, 2015, the holders of our Convertible Senior Notes due 2017 and of our Convertible Senior Notes due 2019 are able to exercise their conversion rights during the three-month period ending September 30, 2015. We may elect, in our sole discretion, to settle any converted notes in the form of cash, and in the case of the Convertible Senior Notes due 2017, the principal amount must be settled in cash. We do not expect holders to exercise a significant amount of these conversion rights prior to maturity. See Note 11 of Notes to Consolidated Financial Statements in our 2014 Form 10-K for further information.

As of June 30, 2015, the total payment of $202 million pursuant to our ASR program has been funded. However, the total number of shares ultimately delivered to Radian Group will be based on the average of the daily volume-weighted average price of Radian Group common stock during the term of the transaction, less a negotiated discount and subject to certain other adjustments pursuant to the terms and conditions of the program. If the adjusted average price of Radian Group common stock during the term of the transaction is higher than the initial repurchase price, Radian Group may be required to make an adjustment payment, which it may make, at its election, in cash or in shares of Radian Group common stock. The final settlement of our ASR program is expected to occur in October 2015, and may occur earlier at the option of the counterparty to the agreement.

In addition to existing available cash and marketable securities, payments made to Radian Group under expense-sharing arrangements with our subsidiaries, as further discussed below, represent Radian Group’s principal source of cash to fund short-term liquidity needs. In addition, Radian Group expects to receive a modest amount of dividends from Clayton, to the extent available.

Corporate Expenses and Interest Expense. Radian Group has expense-sharing arrangements in place with its principal operating subsidiaries that require those subsidiaries to pay their allocated share of certain holding-company-level expenses, including interest payments on most of our outstanding long-term debt. Payments of such corporate expenses for the next 12 months, excluding interest payments on our long-term debt, are expected to be approximately $59.3 million, all of which is expected to be reimbursed by our subsidiaries under our existing expense-sharing arrangements. For the same period, payments of interest on our long-term debt are expected to be approximately $63.1 million, a significant portion of which is expected to be reimbursed by our subsidiaries under our existing expense-sharing arrangements. These expense-sharing arrangements, as amended, have been approved by applicable state insurance departments, but such approval may be modified or revoked at any time.

Capital Support for Subsidiaries. On April 17, 2015, the FHFA issued the final PMIERs, setting forth revised requirements for private mortgage insurers, including Radian Guaranty, to remain eligible insurers of loans purchased by the GSEs. On June 30, 2015, the GSEs updated the PMIERs Financial Requirements to increase the amount of Available Assets that must be held by a private mortgage insurer for loans originated on or after January 1, 2016 that are insured under lender-paid mortgage insurance policies not subject to automatic termination under the HPA. Once the PMIERs become effective for existing eligible mortgage insurers on December 31, 2015, the PMIERs Financial Requirements will replace the capital adequacy standards under the current GSE eligibility requirements. See Note 1 in Notes to Unaudited Condensed Consolidated Financial Statements for additional information.

The final PMIERs Financial Requirements included significant changes to the Minimum Required Asset calculations from those originally published in the proposed PMIERs, with those changes primarily impacting the performing 2005 through 2008 vintage loans, as well as pool insurance. These changes resulted in a significant decrease to Radian Guaranty’s estimated Minimum Required Assets as compared to the originally estimated amount under the proposed PMIERs Financial Requirements.

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Based on our current estimates of Radian Guaranty’s Available Assets and Minimum Required Assets as of June 30, 2015, we expect that Radian Guaranty will have the ability to immediately comply with the PMIERs Financial Requirements through one or more future contributions of a portion of our holding company liquidity to Radian Guaranty and its affiliated reinsurers. Based on our June 30, 2015 estimates, a holding company contribution of approximately $330 million would be required to allow Radian Guaranty to comply with the PMIERs. This estimated contribution assumes that we: (i) convert approximately $80 million of existing liquid assets into PMIERS-compliant Available Assets; and (ii) as currently expected, receive GSE approval for the amendments to our existing quota-share reinsurance arrangements and receive full PMIERs benefit of approximately $145 million for these arrangements. Based on our projections of Radian Guaranty’s Available Assets and Minimum Required Assets as of the December 31, 2015 effective date, we expect that the amount of holding company contribution required for Radian Guaranty to comply with the PMIERs Financial Requirements as of that date will decrease from the amount calculated as of June 30, 2015.

The amount of holding company liquidity that we may contribute to Radian Guaranty and its affiliated reinsurers during the next 12 months to allow Radian Guaranty to comply with the final PMIERS (as updated on June 30, 2015) may depend upon, among other things: (1) our ability to receive, as currently expected, GSE approval for the amendments to our existing reinsurance arrangements and receive the full PMIERs benefit for these arrangements; (2) whether we elect to convert certain liquid assets into PMIERs-compliant Available Assets; (3) the product mix of our NIW and factors affecting the performance of our mortgage insurance business, including our level of defaults, prepayments, the losses we incur on new or existing defaults and the credit characteristics of our mortgage insurance; and (4) how much capital we expect to maintain at our mortgage insurance subsidiaries in excess of the amount required to satisfy the PMIERs Financial Requirements.

Radian Guaranty’s Risk-to-capital as of June 30, 2015 was 16.5 to 1. See Note 13 of Notes to Unaudited Condensed Consolidated Financial Statements for more information. Given our current financial projections for Radian Guaranty, which are subject to risks and uncertainties, we expect Radian Guaranty’s Risk-to-capital to decrease over time. As a result, Radian Guaranty is not expected to need additional capital to satisfy current applicable state insurance regulatory requirements.

Radian Group also could be required to provide capital support for Radian Guaranty and our other mortgage insurance subsidiaries if additional capital is required pursuant to future changes to insurance laws and regulations. The NAIC is in the process of reviewing the minimum capital and surplus requirements for mortgage insurers and considering changes to the Model Act. While the outcome of this process is not known, it is possible that among other changes, the NAIC will recommend and adopt more stringent capital requirements than currently exist under the Model Act, which could increase the capital requirements for Radian Guaranty in states that adopt the new Model Act. While we expect that the capital requirements may increase as a result of changes to the Model Act, we do not believe the changes to the Model Act will result in financial requirements that require greater capital than will be required under the final PMIERs Financial Requirements. In addition, certain of our mortgage insurance subsidiaries that provide reinsurance to Radian Guaranty could require additional capital contributions from Radian Group.

Dividends. Our quarterly common stock dividend is currently $0.0025 per share and, based on our current outstanding shares of common stock, we would require approximately $2.1 million in the aggregate to pay our quarterly dividends for the next 12 months. Radian Group’s ability to pay dividends is subject to limitations under Delaware law that are applicable to corporations, such as Radian Group, that are incorporated in Delaware. Delaware corporation law provides that dividends are only payable out of a corporation’s capital surplus or (subject to certain limitations) recent net profits. As of June 30, 2015, our capital surplus was $2.4 billion, representing our dividend limitation under Delaware law.

If Radian Group’s current sources of liquidity are insufficient for Radian Group to fund its obligations during the next 12 months, or if we otherwise decide to increase our liquidity position, Radian Group may seek additional capital by incurring additional debt, by issuing additional equity, or by selling assets, which we may not be able to do on favorable terms, if at all.

We regularly evaluate opportunities, based on market conditions, to finance our operations by accessing the capital markets or other types of indebtedness with institutional lenders, and consider various measures to improve our capital and liquidity positions, as well as to strengthen our balance sheet and improve our debt maturity profile. In the past, we have repurchased and exchanged, prior to maturity, some of our outstanding debt, and in the future, we may, from time to time, seek to redeem, repurchase or exchange for other securities, some or all of our outstanding debt, prior to maturity, in the open market, through other public or private transactions, including pursuant to one or more tender offers, or through any combination of the foregoing, as circumstances may allow. We may incur additional indebtedness to refinance all or a portion of our long-term debt or for other purposes, but we may not be able to do so on favorable terms, if at all. The timing or amount of any potential transactions will depend on a number of factors, including market opportunities and our views regarding our capital and liquidity positions and potential future needs.

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Radian Group—Long-Term Liquidity Needs

In addition to our short-term liquidity needs discussed above, our most significant needs for liquidity beyond the next 12 months are:

(1) the repayment of our outstanding long-term debt, including:

• $195.5 million principal amount of outstanding debt due in June 2017;

• $60.9 million principal amount of convertible debt due in November 2017, which must be settled in cash, plus, any related conversion premium which may, at our option, be settled in cash, common shares or a combination thereof;

• $400 million of convertible debt due in March 2019 for which the principal amount and any conversion premium may, at our option, be settled in cash, common shares or a combination thereof;

• $300 million principal amount of outstanding debt due in June 2019; and

• $350 million principal amount of outstanding debt due in June 2020;

(2) potential additional capital contributions to our subsidiaries, including future additional contributions related to compliance with the PMIERs Financial Requirements; and

(3) potential payments to the U.S. Treasury resulting from our dispute with the IRS relating to the examination of our 2000 through 2007 consolidated federal income tax returns by the IRS.

On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties of approximately$157 million. The Deficiency Amount has not been reduced to reflect our NOL carryback ability.As of June 30, 2015, there also would be interest of approximately$120 millionrelated to these matters. Depending on the outcome, additional state income taxes, penalties and interest (estimated in the aggregate to be approximately$31 millionas of June 30, 2015) also may become due when a final resolution is reached. The Notices of Deficiency also reflected additional amounts due of approximately$105 million, which are primarily associated with the disallowance of the previously filed carryback of our 2008 NOL to the 2006 and 2007 tax years. We believe that the disallowance of our 2008 NOL carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL carryback claim. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding this IRS matter.

Radian Group and RGRI are parties to an Assumption and Indemnification Agreement with regard to a portion of the Deficiency Amount. This indemnification agreement was made in lieu of an immediate capital contribution to RGRI that otherwise would have been required for RGRI to maintain its minimum statutory policyholders’ surplus requirements in light of the remeasurement as of December 31, 2011 of uncertain tax positions related to the portfolio of REMIC residual interests. See Note 12 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding the IRS matter.

On December 3, 2014, we petitioned the U.S. Tax Court to litigate the Deficiency Amount. We can provide no assurance regarding the outcome of this IRS litigation, which may take several years to resolve, or whether a compromised settlement with the IRS will ultimately be reached. As such, there remains significant uncertainty with regard to the amount and timing of any potential payments under the indemnity agreement described above.

As of the balance sheet date, certain of our insurance subsidiaries, including Radian Guaranty, have incurred NOLs that could not be carried-back and utilized on a separate company tax return basis. As a result, we are not currently obligated under our tax-sharing agreement to reimburse these subsidiaries for their separate company NOL Carryforward. However, if in a future period our consolidated NOL is fully utilized before a subsidiary has utilized its share of NOLs on a separate entity basis, then Radian Group may be obligated to fund such subsidiary’s share of our consolidated tax liability to the IRS. Currently, we do not expect to fund material obligations under the provisions described in this paragraph with regard to subsidiary NOLs incurred to date.

We expect to meet the long-term liquidity needs of Radian Group with a combination of: (i) available cash and marketable securities; (ii) private or public issuances of debt or equity securities, which we may not be able to do on favorable terms, if at all; (iii) cash received under expense-sharing arrangements with our subsidiaries; and (iv) dividends from our subsidiaries, including Clayton, to the extent available.

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Mortgage Insurance

As of June 30, 2015, our Mortgage Insurance segment maintained claims paying resources of $4.0 billion, which consist of contingency reserves, statutory policyholders’ surplus, unearned premium reserves and loss reserves.

The principal demands for liquidity in our mortgage insurance business include the payment of claims and potential claim settlement transactions, operating expenses (including those allocated from Radian Group) and taxes. The principal sources of liquidity in our mortgage insurance business currently include insurance premiums, net investment income and capital contributions from Radian Group. We believe that the operating cash flows generated by each of our mortgage insurance subsidiaries will provide these subsidiaries with a substantial portion of the funds necessary to satisfy their claim payments, operating expenses and taxes for the foreseeable future. We believe that we have the ability to fund any operating cash flow shortfall from sales and maturities of marketable securities in our investment portfolio maintained at our operating companies. In the event that we are unable to fund excess claim payments and operating expenses through the sale of these marketable securities and from maturing fixed-income investments, we may be required to incur unanticipated capital losses or delays in connection with the sale of less liquid marketable securities held by our operating companies.

On April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance for a purchase price of approximately $810 million, pursuant to the Radian Asset Assurance Stock Purchase Agreement. After closing costs and other adjustments, Radian Guaranty received net proceeds of $789 million. See Note 2 of Notes to Unaudited Condensed Consolidated Financial Statements for more information regarding the Radian Asset Assurance Stock Purchase Agreement.

On April 17, 2015, the FHFA issued the final PMIERs, setting forth revised requirements for private mortgage insurers, including Radian Guaranty, to remain eligible insurers of loans purchased by the GSEs. The PMIERs were further updated on June 30, 2015. Once they become effective for existing eligible mortgage insurers on December 31, 2015, the PMIERs Financial Requirements will replace the capital adequacy standards under the current GSE eligibility requirements. See Note 1 of Notes to Unaudited Condensed Consolidated Financial Statements for more information regarding the PMIERs.

Freddie Mac Agreement

In connection with the closing under the Freddie Mac Agreement, Radian Guaranty deposited $205 million of investment securities into a collateral account. This account remains on our condensed consolidated balance sheets due to the rights that Radian Guaranty has with respect to those funds. From the time the collateral account was established through June 30, 2015, approximately $128 million of Loss Mitigation Activity had become final in accordance with the Freddie Mac Agreement and approximately $13 million of submitted claims had been rescinded, denied, curtailed or cancelled, but were not yet considered final in accordance with the Freddie Mac Agreement. Subject to certain conditions in the Freddie Mac Agreement, amounts in the collateral account may be released to Radian Guaranty from Freddie Mac over time to the extent that Loss Mitigation Activity becomes final in accordance with the terms of the Freddie Mac Agreement. Radian expects to withdraw an amount from this account in August 2015 related to Loss Mitigation Activity that has become final as of such date. If the amount of Loss Mitigation Activity that becomes final in accordance with the Freddie Mac Agreement after the collateral account was established is less than $205 million prior to August 29, 2017, then any shortfall will be paid on that date to Freddie Mac from the funds remaining in the collateral account, subject to certain adjustments designed to allow for any Loss Mitigation Activity that has not become final or any claims evaluation that has not been completed as of that date.

Services

As of June 30, 2015, our Services segment maintained cash and cash equivalents totaling $13.4 million, which included restricted cash of $1.6 million.

The principal demands for liquidity in our Services segment include the payment of employee compensation and other operating expenses (including those allocated from Radian Group), interest payments related to the Senior Notes due 2019, and dividends to Radian Group. The principal sources of liquidity in our Services segment are cash generated by operations and, to the extent necessary, capital contributions from Radian Group.

Liquidity levels may fluctuate depending on the levels and contractual timing of our invoicing and the payment practices of the Services clients, in combination with the timing of Services’ payments for employee compensation and to external vendors. The amount, if any, and timing of the Services segment’s dividend paying capacity will depend primarily on the amount of excess cash flow generated by the segment.

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We believe that the cash flows generated by Services’ operations will provide the funds necessary to satisfy the Services segment’s needs for the foreseeable future. However, the segment’s activities are primarily affected by transaction volume, which is subject to fluctuation due to market conditions and depends on maintaining successful client relationships. Dividend payments to Radian Group would be adversely impacted and funding support may be required for the Services segment if unanticipated events and circumstances were to result in lower earnings or cash flow than expected. In the event the cash flow from operations of the Services segment is not adequate to fund all of its needs, Radian Group may be required to provide additional funds to the Services segment in the form of a capital contribution or an intercompany note.

Reconciliation of Consolidated Net Income to Cash Used in Operations

The following table reconciles consolidated net income to cash flows used in operations for the periods indicated:

	Six Months Ended June 30,
(In thousands)	2015			2014
Net income	$	142,305		$	377,592
Less: Income from discontinued operations, net of tax	5,385			128,075
Adjustments to reconcile net income to net cash used in operating activities:
Net gains on investments and other financial instruments recognized in earnings	(45,227		)	(68,300		)
Loss on induced conversion and debt extinguishment	91,876			—
Net payments related to derivative contracts and VIEs (1)	(3,203		)	(42		)
Commutation-related charges	—			1,105
Deferred income tax provision (benefit)	82,522			(553		)
Amortization and impairment of intangible assets	6,304			—
Depreciation and amortization, net	32,396			28,802
Change in:
Unearned premiums	21,443			30,788
Deferred policy acquisition costs	2,137			3,298
Reinsurance recoverables	14,892			21,523
Reserve for losses and LAE	(355,240		)	(450,257		)
Other assets	7,930			19,501
Other liabilities	(59,554		)	(72,135		)
Net cash used in operating activities, continuing operations	(66,804		)	(236,753		)
Net cash used in operating activities, discontinued operations	(1,759		)	(23,107		)
Net cash used in operating activities	$	(68,563	)	$	(259,860	)

_____________

(1) Cash item.

Net cash used in operating activities decreased for the six months ended June 30, 2015 compared to the same period of 2014, primarily as a result of a decrease in total paid claims.

Stockholders’ Equity

Stockholders’ equity was $2.4 billion at June 30, 2015, compared to $2.1 billion at December 31, 2014. The increase in stockholders’ equity resulted primarily from: (i) our net income of $142.3 million for the six months ended June 30, 2015; and (ii) the impact of our recently completed debt and equity transactions to strengthen Radian’s capital position, which increased stockholder’s equity by $159.0 million, excluding the $70 million after-tax impact from the loss on induced conversion and debt extinguishment already reflected in net income. See Recent Developments - Recent Debt and Equity Transactions for additional information.

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Ratings

Radian Group and Radian Guaranty have been assigned the ratings set forth in the chart below. We believe that ratings often are considered by others in assessing our credit strength and the financial strength of our primary mortgage insurance subsidiary.

	Moody’s (1)	S&P (2)
Radian Group	B1	B
Radian Guaranty	Ba1	BB

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(1) Moody’s outlook for Radian Group and Radian Guaranty is currently Positive.

(2) S&P’s outlook for Radian Group and Radian Guaranty is currently Positive.

Recent Ratings Actions

Changes during current quarter. On June 25, 2015, Moody’s upgraded Radian Group’s credit rating for its senior unsecured debt from B2 to B1, with a positive outlook. The upgrade reflects Moody’s view that our recent debt issuance of Senior Notes due 2020, along with the purchases of a portion of our Convertible Senior Notes due 2017: (1) meaningfully improves Radian Group’s debt maturity profile; and (2) better aligns debt maturities with the expected timing of dividend capacity from our subsidiaries. In addition, Moody’s noted that the final PMIERs reduced the amount of additional capital required at Radian Guaranty as compared to the amount originally estimated under the proposed PMIERs requirements, further relieving the demand on Radian Group’s liquidity resources. Radian Guaranty’s credit rating was unchanged, reflecting Moody’s observation that although the debt issuance is also positive for Radian Guaranty, its plan to attain compliance with the PMIERs has not yet been implemented.

On April 1, 2015, Moody’s upgraded Radian Group’s credit rating on its senior unsecured notes from B3 to B2 and Radian Guaranty’s insurance financial strength rating from Ba2 to Ba1, with a Stable outlook for Radian Group and a Positive outlook for Radian Guaranty. The upgrades reflect Moody’s view that the sale of Radian Asset Assurance increases the amount of capital readily accessible to Radian Guaranty, and strengthens its capital adequacy relative to its insured mortgage exposures. In addition, completion of the sale of Radian Asset Assurance is an important step towards attaining PMIERs compliance, and helps defend against the potential for erosion of Radian Guaranty’s franchise due to actual or perceived difficulties in becoming compliant.

Changes during prior quarter. On March 9, 2015, S&P upgraded Radian Group’s credit rating from B- to B and Radian Guaranty’s insurance financial strength rating from BB- to BB, based on their revised mortgage insurance criteria, with a Positive outlook for both Radian Group and Radian Guaranty. Among the positive factors driving these ratings changes, S&P cited Radian Guaranty’s ability to compete effectively and profitably in the mortgage insurance market and its high liquidity ratio. S&P cited that their positive outlook reflects Radian Group’s potential for continued strengthening in operating performance and capitalization, and its sustained market share. S&P’s assessment also incorporates their view of the intermediate risk inherent in the U.S. mortgage insurance industry associated with the structural aspect of the mortgage and housing markets and U.S. macroeconomic factors.

Critical Accounting Policies

As of the filing date of this report, there were no significant changes in our critical accounting policies from those discussed in our 2014 Form 10-K. See Note 1 of Notes to Unaudited Condensed Consolidated Financial Statements for accounting pronouncements issued but not yet adopted that may impact the Company’s consolidated financial position, earnings, cash flows or disclosures.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market risk represents the potential for loss due to adverse changes in the value of financial instruments as a result of changes in market conditions. Examples of market risk include changes in interest rates, foreign currency exchange rates, credit spreads and equity prices. We perform a sensitivity analysis to determine the effects of market risk exposures on our investment securities. Our sensitivity analysis for interest rates is generally calculated as a parallel shift in yield curve with all other factors remaining constant. This analysis is performed by determining the potential loss in future earnings, fair values or cash flows of market-risk-sensitive instruments resulting from one or more selected hypothetical changes in interest rates, foreign currency exchange rates and equity prices.

Interest-Rate Risk

The primary market risk in our investment portfolio is interest-rate risk, namely the fair value sensitivity of a fixed-income security to changes in interest rates. We regularly analyze our exposure to interest-rate risk and have determined that the fair value of our interest-rate sensitive investment assets is materially exposed to changes in interest rates.

We estimate the changes in fair value of our fixed-income securities by projecting an instantaneous increase and decrease in interest rates. Excluding investments classified as assets held for sale as a result of the Radian Asset Assurance Stock Purchase Agreement, the carrying value of our investment portfolio at June 30, 2015 and December 31, 2014 was $4.3 billion and $3.6 billion, respectively, of which 99% and 95%, respectively, was invested in fixed-income securities at each period. We calculate duration of our fixed-income securities, expressed in years, in order to estimate interest-rate sensitivity of these securities. At June 30, 2015, a 100 basis point increase in interest rates would reduce the market value of our fixed-income securities by $157.5 million, while a 100 basis point decrease in interest rates would increase the market value of our fixed-income securities by $166.3 million. At June 30, 2015, the average duration of the fixed-income portfolio was 3.6 years compared to 3.5 years at December 31, 2014, reflecting an increase in the percentage of corporate bonds and notes as well as a decrease in the percentage of short-term securities in the portfolio.

Foreign Exchange Rate Risk

As of June 30, 2015 and December 31, 2014, we did not hold any foreign currency denominated securities in our investment portfolio. Exchange gains and losses on foreign currency transactions from our foreign operations have not been material due to the limited amount of business performed in those locations. Currency risk is further limited because, in general, both the revenues and expenses of our foreign operations are denominated in the same functional currency, based on the country in which the operations occur.

Equity Market Price

At June 30, 2015, the market value and cost of the equity securities in our investment portfolio were $68.0 million and $62.5 million, respectively. Included in the market value and cost of our equity securities at June 30, 2015 is $67.1 million and $62.0 million, respectively, of securities classified as trading securities. At December 31, 2014, the market value and cost of the equity securities in our investment portfolio were $215.6 million and $143.9 million, respectively. Included in the market value and cost of our equity securities at December 31, 2014 is $72.3 million and $67.0 million, respectively, of securities classified as trading securities. Exposure to changes in equity market prices can be estimated by assessing potential changes in market values on our equity investments resulting from a hypothetical broad-based decline in equity market prices of 10%. With all other factors remaining constant, we estimated that such a decrease would reduce our investment portfolio held in equity investments by $6.8 million as of June 30, 2015.

Our results of operations include compensation expenses associated with cash-settled equity-based long-term incentive awards, primarily all of which were issued in 2011 and 2012 in the form of performance-based restricted stock unit awards that vest at the end of three-year performance periods. The awards granted in 2011 vested and were paid to grantees in June 2014. The awards granted in 2012 vested and were paid to grantees in June 2015. The compensation expense related to all of these awards is based on the estimated fair value of the liability, and is impacted by changes in our stock price and, to a lesser extent, other factors. The related liability is adjusted quarterly based on changes in our current stock price during the period and other factors that we utilize to estimate the ultimate payout of each award. For the six months ended June 30, 2015 and 2014, changes in the estimated fair value of the liability for these equity-based long-term incentive awards were $5.8 million and $8.5 million, respectively, primarily due to changes in our stock price, which increased by $2.04 and $0.69, respectively, during the six-month periods ended June 30, 2015 and 2014.

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Item 4. Controls and Procedures.

Disclosure Controls and Procedures

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Our management, including our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) as of June 30, 2015, pursuant to Rule 15d-15(e) under the Exchange Act. Management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which by their nature can provide only reasonable assurance regarding management’s control objectives. Management does not expect that our disclosure controls and procedures will prevent or detect all errors and fraud. A control system, irrespective of how well it is designed and operated, can only provide reasonable assurance and cannot guarantee that it will succeed in its stated objectives.

Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2015, our disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Our internal control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

There was no change in our internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

We are routinely involved in a number of legal actions, regulatory inquiries, investigations and reviews, audits and other proceedings, the outcomes of which are uncertain. The legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals for a legal proceeding only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range.

In the course of our regular review of pending legal matters, we determine whether it is reasonably possible that a potential loss relating to a legal proceeding may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to legal loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any.

Loss estimates are inherently subjective, based on currently available information, and are subject to management’s judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and unpredictability surrounding the outcome of legal and other proceedings, actual results may differ materially from any amounts that have been accrued.

As previously disclosed, we are contesting adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. The IRS opposes the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of non-economic REMIC residual interests and proposed adjustments denying the associated tax benefits of these items. We appealed these proposed adjustments to Appeals and made “qualified deposits” with the U.S. Treasury of approximately$85 millionin June 2008 relating to the 2000 through 2004 tax years and approximately$4 millionin May 2010 relating to the 2005 through 2007 tax years in order to avoid the accrual of above-market-rate interest with respect to the proposed adjustments.

We made several attempts to reach a compromised settlement with Appeals, but in January 2013, we were notified that Appeals had rejected our latest settlement offer and planned to issue formal Notices of Deficiency related to certain losses and deductions resulting from our investment in the portfolio of non-economic REMIC residual interests, as discussed above.On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties of approximately$157 million. The Deficiency Amount has not been reduced to reflect our NOL carryback ability.As of June 30, 2015, there also would be interest of approximately$120 millionrelated to these matters. Depending on the outcome, additional state income taxes, penalties and interest (estimated in the aggregate to be approximately$31 millionas of June 30, 2015) also may become due when a final resolution is reached. The Notices of Deficiency also reflected additional amounts due of approximately$105 million, which are primarily associated with the disallowance of the previously filed carryback of our 2008 NOL to the 2006 and 2007 tax years. We believe that the disallowance of our 2008 NOL carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL carryback claim.

In addition to the litigation discussed above, we are involved in litigation that has arisen in the normal course of our business. We are contesting the allegations in each such pending action and management believes, based on current knowledge and after consultation with counsel, that the outcome of such litigation will not have a material adverse effect on our consolidated financial condition. However, the outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of the matters currently pending or threatened could have an unanticipated adverse effect on our liquidity, financial condition or results of operations for any particular period.

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We are subject to regulatory inquiries, investigations and reviews. We and other mortgage insurers have been subject to inquiries from the Minnesota Department of Commerce requesting information relating to captive reinsurance. We have cooperated with these requests for information. In June 2015, Radian Guaranty executed a Consent Order with the Minnesota Department of Commerce that resolved the Minnesota Department of Commerce’s outstanding inquiries related to captive reinsurance arrangements involving mortgage insurance in Minnesota without any findings of wrongdoing. As part of the Consent Order, Radian Guaranty paid an immaterial amount to Minnesota and agreed not to enter into new captive reinsurance arrangements for a period of ten years ending in June 2025. We have not entered into any new captive reinsurance arrangements since 2007.

In June 2015, we and other mortgage insurers received a letter from the Office of the Commissioner of Insurance of the State of Wisconsin (“Wisconsin OCI”) requesting information pertaining to customized insurance rates and terms offered to mortgage insurance customers. We submitted a response to the Wisconsin OCI in June 2015, as requested. Although we believe we are in compliance with applicable Wisconsin state law requirements for mortgage guaranty insurance, we cannot predict the outcome of this matter or whether additional inquiries, actions or proceedings may be pursued against us by the Wisconsin OCI or other regulators.

Radian Asset Assurance, our former financial guaranty subsidiary, received a series of claims (€13.5 million, or $16.4 million, as of December 31, 2014) from one of its trade credit and surety ceding companies related to surety bonds for Spanish housing cooperative developments. This legal matter was part of our discontinued operations as of December 31, 2014, and was transferred to Assured as part of the sale of Radian Asset Assurance on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement. As a result, we no longer have any risk of loss associated with this matter.

For a description of previously reported legal proceedings, see Part I, Item 3, “Legal Proceedings,” of our 2014 Form 10-K.

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Item 1A. Risk Factors.

There have been no material changes to our risk factors as previously disclosed in our 2014 Form 10-K, except as set forth below.

Radian Guaranty may fail to maintain its eligibility status with the GSEs.

In order to be eligible to insure loans purchased by the GSEs, mortgage insurers must meet the GSEs’ eligibility requirements. If Radian Guaranty is unable to satisfy one or more of these requirements, Freddie Mac and/or Fannie Mae could restrict Radian Guaranty from conducting certain types of business with them or take actions that may include not purchasing loans insured by Radian Guaranty.

The GSEs recently revised their eligibility requirements for private mortgage insurers. On April 17, 2015, the FHFA issued the final PMIERs setting forth the revised requirements for private mortgage insurers, including Radian Guaranty, to remain eligible insurers of loans purchased by the GSEs. On June 30, 2015, the GSEs updated the PMIERs Financial Requirements to increase the amount of Available Assets that must be held by a private mortgage insurer for loans originated on or after January 1, 2016 that are insured under lender-paid mortgage insurance policies not subject to automatic termination under the HPA. When they become effective for existing approved mortgage insurers on December 31, 2015, the PMIERs Financial Requirements will replace the existing capital adequacy standards under the current eligibility guidelines.

The PMIERs Financial Requirements require a mortgage insurer’s Available Assets to meet or exceed its Minimum Required Assets. Under the final PMIERs, Radian Guaranty’s Available Assets and Minimum Required Assets are determined on an aggregate basis, taking into account the assets and insured risk of Radian Guaranty and its affiliated reinsurers. Therefore, developments that impact the assets and insured risk of Radian Guaranty and its affiliated reinsurers individually (such as capital contributions from Radian Group) also will impact the aggregate Available Assets and Minimum Required Assets, and importantly, Radian Guaranty’s compliance with the PMIERs Financial Requirements. As a result, references to Radian Guaranty’s Available Assets and Minimum Required Assets take into consideration both Radian Guaranty and its affiliated reinsurers.

Radian Group currently maintains approximately $735 million of available liquidity. Based on our June 30, 2015 estimates of Radian Guaranty’s Available Assets and Minimum Required Assets, a contribution of approximately $330 million from our existing holding company liquidity would be required to allow Radian Guaranty to comply with the PMIERs Financial Requirements. This estimated contribution assumes that we:

• convert approximately $80 million of existing liquid assets into PMIERs-compliant Available Assets; and

• as currently expected, receive GSE approval for the amendments to our existing quota-share reinsurance arrangements and receive the full PMIERs benefit of approximately $145 million for these arrangements.

It is possible that we have not estimated accurately Radian Guaranty’s Minimum Required Assets and Available Assets under the PMIERs Financial Requirements, which serve as a basis for our projections regarding the amount of holding company liquidity that we may need to contribute to allow Radian Guaranty to comply with the PMIERs Financial Requirements. Radian Guaranty’s Minimum Required Assets and/or Available Assets (and consequently, the amount of holding company contributions required to allow Radian Guaranty to comply with the final PMIERs) may be impacted by, among other things: (1) our ability to receive GSE approval for the full PMIERs benefit of our existing reinsurance arrangements; (2) whether we elect to convert certain liquid assets into PMIERs-compliant Available Assets; (3) the product mix of our NIW and factors affecting the performance of our mortgage insurance business, including our level of defaults, prepayments, the losses we incur on new or existing defaults and the credit characteristics of our mortgage insurance; and (4) how much capital we expect to maintain at our mortgage insurance subsidiaries in excess of the amount required to satisfy the PMIERs Financial Requirements.

Contributions of holding company cash and investments from Radian Group to Radian Guaranty and its affiliated reinsurers will leave less liquidity to satisfy Radian Group’s future obligations. Depending on the amount of holding company contributions that we make, we may be required (or may decide to seek) additional capital by incurring additional debt, issuing additional equity, or selling assets, which we may not be able to do on favorable terms, if at all.

Absent a change in our mortgage insurance pricing, the more onerous financial requirements in the PMIERs for NIW compared to existing capital standards will negatively impact our returns on subsidiary capital. Any potential change in our mortgage insurance pricing likely will depend on competition and our evaluation of projected risk-adjusted returns on the business we write, among other factors. An increase in pricing may not be feasible for a number of reasons, including competition from other private mortgage insurers, the FHA or other credit enhancement products.

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The PMIERs Financial Requirements include more onerous financial requirements for loans with a higher likelihood of default and/or certain credit characteristics, such as higher LTVs and lower FICO scores, as well as for loans originated after January 1, 2016 that are insured under lender-paid mortgage insurance policies not subject to automatic termination under the HPA. Therefore, if our mix of business includes a higher percentage of loans that are subject to these increased financial requirements, it would increase the Minimum Required Assets and/or the amount of Available Assets that Radian Guaranty is required to hold. As a result, depending on the circumstances, we may choose to limit the type of business we are willing to write based on the increased financial requirements associated with certain loans. This could reduce the amount of NIW we write, which could reduce our revenues.

The PMIERs provide that the factors that are applied to calculate and determine a mortgage insurer’s Minimum Required Assets will be updated every two years or more frequently, as determined by the GSEs, to reflect changes in macroeconomic conditions or loan performance. As a result, there is some ongoing uncertainty regarding the amount of capital that Radian Guaranty may require in the future in order to remain compliant with the PMIERs Financial Requirements.

The PMIERs contain requirements related to the operations of our mortgage insurance business, including extensive and more stringent operational requirements in areas such as claim processing, loss mitigation, document retention, underwriting, quality control, reporting and monitoring, among others. These increased operational requirements may require changes to our business practices that may result in substantial additional costs in order to achieve and maintain compliance with the PMIERs.

In September 2014, Fannie Mae notified us (and other private mortgage insurers operating under remediation plans under existing eligibility requirements) that until the effective date of the final PMIERs, Radian Guaranty must obtain Fannie Mae’s prior written approval before taking certain actions such as paying dividends, entering into various inter-company agreements and commuting or reinsuring risk, among others. These restrictions are incorporated into the final PMIERs such that Radian Guaranty will be required to obtain the consent of both GSEs before taking certain actions, which could prohibit or delay Radian Guaranty from taking certain actions that would be advantageous to Radian Guaranty or its affiliates, including Radian Group.

Although we expect to retain Radian Guaranty’s eligibility status with the GSEs and to comply with the PMIERs once effective, we cannot provide assurance that this will occur. Loss of Radian Guaranty’s eligibility status with the GSEs would likely have an immediate and material adverse impact on the franchise value of our mortgage insurance business and our future prospects, as well as a material negative impact on our results of operations and financial condition.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Issuance of Unregistered Securities

During 2014, no equity securities of the Company were sold that were not registered under the Securities Act. Over the course of two days on June 22, 2015 and June 23, 2015, in connection with, and as partial consideration for, the purchases of an aggregate principal amount of $389.1 million of our Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock, we issued an aggregate of 28,403,278 shares of Radian Group common stock to certain holders of the Convertible Senior Notes due 2017. The shares were issued to “qualified institutional buyers” within the meaning of Rule 144A promulgated under the Securities Act and were offered and sold in reliance on the exemption from registration afforded by Section 4(a)(2) of the Securities Act and corresponding provisions of state securities laws. See Notes 10 and 16 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information on the individual transactions.

Issuer Purchases of Equity Securities

The following table provides information about purchases of Radian Group common stock by us (and our affiliated purchasers) during the three months ended June 30, 2015, pursuant to Section 12 of the Exchange Act.

Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan or Programs (2)
ASR program
6/1/2015 to 6/30/2015	9,201,500	(1)	9,201,500	$	—
ASR program total	9,201,500	(1)	9,201,500	—
Other purchases (3)	2,300,000	$18.68	—	—
Total (4)	11,501,500		9,201,500	$	—

______________________

(1) On June 18, 2015, we announced that our board of directors had authorized an ASR program to repurchase an aggregate of approximately $202 million of Radian Group common stock. Under this program, the total number of shares ultimately delivered to Radian Group, and therefore, the average price per share, will be based on the average of the daily volume-weighted average price of Radian Group common stock during the term of the transaction, less a negotiated discount and subject to certain other adjustments pursuant to the terms and conditions of the program. Final settlement of the ASR program is expected to occur in October 2015, and may occur earlier at the option of the counterparty to the agreement. Share purchases under this program were funded from the proceeds of the Senior Notes due 2020.

(2) Radian Group’s share repurchase program does not obligate it to acquire any specific number of shares; however, approximately $202 million is authorized to be repurchased under the ASR program. As of June 30, 2015, the total payment of $202 million pursuant to our ASR program has been funded. Amounts shown in this column have been reduced by the $30.1 million aggregate value of shares held back by the investment banker, to be delivered pending the final settlement of the ASR program referenced in Note (1) above.

(3) On June 18, 2015, we announced that in connection with our June 2015 purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of $54.9 million, consisting of 2,300,000 shares of Radian Group common stock and $12.0 million in cash.

(4) This table includes only repurchases of common stock, and therefore does not include an aggregate of 1,456 shares of Radian Group common stock at an average price of $18.37 per share, withheld from the vesting of certain share-based compensation awards under our equity compensation plans to satisfy the tax liability of the award recipients.

Item 6. Exhibits.

The information required by this item is set forth on the Exhibit Index that follows the signature page of this report.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Radian Group Inc.
August 7, 2015	/s/    J. FRANKLIN HALL
	J. Franklin Hall
	Executive Vice President, Chief Financial Officer
	/s/    CATHERINE M. JACKSON
	Catherine M. Jackson
	Senior Vice President, Controller

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EXHIBIT INDEX

Exhibit No.	Exhibit Name
4.1	Senior Indenture dated as of March 4, 2013 between the Registrant and U.S. Bank National Association, as Trustee (incorporated by reference to the Registrant’s Current Report on Form 8-K (file no. 1-11356) dated February 27, 2013 and filed on March 4, 2013).
4.2	Third Supplemental Indenture dated as of June 19, 2015 between the Registrant and U.S. Bank National Association, as Trustee (incorporated by reference to the Registrant’s Current Report on Form 8-K (file no. 1-11356) dated June 16, 2015 and filed on June 19, 2015).
4.3	Form of 5.250% Senior Notes due 2020 (included as Exhibit A to the Third Supplemental Indenture in Exhibit 4.2).
*10.1	Accelerated Share Repurchase Agreement, dated as of June 18, 2015, between the Registrant and Deutsche Bank AG, London Branch with Deutsche Bank Securities Inc. acting as agent.
*12	Statement of Ratio of Earnings to Fixed Charges
*31	Rule 13a - 14(a) Certifications
**32	Section 1350 Certifications
*101	Pursuant to Rule 405 of Regulation S-T, the following financial information from Radian Group Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, is formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, (ii) Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2015 and 2014, (iv) Condensed Consolidated Statements of Changes in Common Stockholders’ Equity for the six months ended June 30, 2015 and 2014, (v) Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014, and (vi) the Notes to Unaudited Condensed Consolidated Financial Statements.

_______________________

* Filed herewith.

** Furnished herewith.

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EX-10.1

Exhibit 10.1

Deutsche Bank

Deutsche Bank AG, London Branch

Winchester house

1 Great Winchester St, London EC2N 2DB

Telephone: 44 20 7545 8000

c/o Deutsche Bank Securities Inc.

60 Wall Street

New York, NY 10005

Telephone: 212-250-2500

Internal Reference: 639313

Opening Transaction

To:	Radian Group Inc. 1601 Market Street Philadelphia, PA 19103
Re:	Accelerated Stock Buyback
Date:	June 18, 2015

DEUTSCHE BANK AG, LONDON BRANCH IS NOT REGISTERED AS A BROKER DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF 1934. DEUTSCHE BANK SECURITIES INC. (“DBSI”) HAS ACTED SOLELY AS AGENT IN CONNECTION WITH THE TRANSACTION AND HAS NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION. AS SUCH, ALL DELIVERY OF FUNDS, ASSETS, NOTICES, DEMANDS AND COMMUNICATIONS OF ANY KIND RELATING TO THIS TRANSACTION BETWEEN DEUTSCHE BANK AG, LONDON BRANCH, AND COUNTERPARTY SHALL BE TRANSMITTED EXCLUSIVELY THROUGH DEUTSCHE BANK SECURITIES INC. DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

This master confirmation (this “Master Confirmation”), dated as of June 18, 2015 is intended to set forth certain terms and provisions of certain Transactions (each, a “Transaction”) entered into from time to time between Deutsche Bank AG, London Branch (“Seller” or “Deutsche”), with Deutsche Bank Securities Inc. acting as agent, and Radian Group Inc. (“Counterparty”). This Master Confirmation, taken alone, is neither a commitment by either party to enter into any Transaction nor evidence of a Transaction. The additional terms of any particular Transaction shall be set forth in a Supplemental Confirmation in the form of Schedule A hereto (a “Supplemental Confirmation”), which shall reference this Master Confirmation and supplement, form a part of, and be subject to this Master Confirmation. This Master Confirmation and each Supplemental Confirmation (collectively, the “Trade Documents”) together shall constitute a “Confirmation” as referred to in the Agreement specified below.

Chairman of the Supervisory Board: Dr. Paul Achleitner.  Management Board: Jürgen Fitschen (Co-Chairman), Anshu Jain (Co-Chairman), Stefan Krause, Stephan Leithner, Stuart Lewis, Rainer Neske and Henry Ritchotte. Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervising Authority) and by the Prudential Regulation Authority and subject to limited regulation by the Prudential Regulation Authority and Financial Conduct Authority. Deutsche Bank AG, London Branch is a member of the London Stock Exchange. Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am Main; Branch Registration in England and Wales BR000005; Registered address: Winchester House, 1 Great Winchester Street, London EC2N 2DB. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available on request or from https://www.db.com/en/content/eu_disclosures_uk.htm.

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Master Confirmation. The Trade Documents evidence a complete binding agreement between Counterparty and Seller as to the subject matter and terms of each Transaction to which the Trade Documents relate and shall supersede all prior or contemporaneous written or oral communications with respect thereto.

The Trade Documents supplement, form a part of, and are subject to an agreement in the form of the 1992 ISDA Master Agreement (Multicurrency-Cross Border) (the “Agreement”) as if Seller and Counterparty had executed the Agreement on the date of this Master Confirmation (but without any Schedule except for the election of Loss and Second Method, New York law (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and US Dollars (“USD”) as the Termination Currency).

The Transactions shall be the sole Transactions under the Agreement and shall not be “Specified Transactions” (or similarly treated) under any other agreement between the parties or their Affiliates. If there exists any ISDA Master Agreement between Seller and Counterparty or any confirmation or other agreement between Seller and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between Seller and Counterparty, then notwithstanding anything to the contrary in such ISDA Master Agreement, such confirmation or agreement or any other agreement to which Seller and Counterparty are parties, the Transactions shall not be considered Transactions under, or otherwise governed by, such existing or deemed ISDA Master Agreement and any Event of Default or Termination Event of any Transaction or the Agreement shall not, by itself, give rise to any right or obligation under any such other agreement or deemed agreement.

All provisions contained or incorporated by reference in the Agreement shall govern the Trade Documents, except as expressly modified herein or in the other Trade Documents.

If, in relation to any Transaction to which the Trade Documents relate, there is any inconsistency between the Agreement, this Master Confirmation, the relevant Supplemental Confirmation and the Equity Definitions, the following will prevail for purposes of such Transaction in the order of precedence indicated: (i) such Supplemental Confirmation; (ii) this Master Confirmation; (iii) the Agreement; and (iv) the Equity Definitions. For the avoidance of doubt, except to the extent of an express conflict, the application of any provision of the Agreement, the Trade Documents and the Equity Definitions shall not be construed to exclude or limit the application of any other provision of the Agreement, the Trade Documents or the Equity Definitions.

1.Each Transaction constitutes a Share Forward Transaction for the purposes of the Equity Definitions. Set forth below are the terms and conditions that, together with the terms and conditions set forth in the other Trade Documents relating to any Transaction, shall govern such Transaction.

General Terms:

Trade Date: For each Transaction, as set forth in the related Supplemental Confirmation.

Buyer: Counterparty

Seller: Deutsche Bank AG, London Branch

Shares: The common stock, par value $0.001 per share, of Counterparty (Ticker: RDN)

Exchange: The New York Stock Exchange

Related Exchange(s): All Exchanges

Prepayment/Variable

Obligation: Applicable

Prepayment Amount: For each Transaction, as set forth in the related Supplemental Confirmation.

Prepayment Date: For each Transaction, as set forth in the related Supplemental Confirmation.

Valuation:

VWAP Price: For any Exchange Business Day, the New York Stock Exchange Rule 10b-18 Volume Weighted Average Price per Share for the regular trading session of the Exchange, as published on Bloomberg page “RDN UN <equity> AQR SEC” (or any successor thereto) at 8:00 a.m. New York time on the following Exchange Business Day, subject to “Valuation Disruption” below, or if such price is not so reported on such Exchange Business Day for any reason or is, in the Calculation Agent’s discretion, manifestly incorrect on any given day, the Calculation Agent may use a commercially reasonable alternate means of calculating such VWAP Price on such day.

Forward Price: The average of the VWAP Prices for the Exchange Business Days in the Calculation Period, subject to “Valuation Disruption” below.

Forward Price

Adjustment Amount: For each Transaction, as set forth in the related Supplemental Confirmation.

Calculation Period: The period from, and including, the Calculation Period Start Date to, and including, the Termination Date.

Calculation Period Start Date: For each Transaction, as set forth in the related Supplemental Confirmation, to be the first Exchange Business Day immediately following the Trade Date, subject to postponement as provided in “Valuation Disruption” below.

Termination Date: For each Transaction, the Scheduled Termination Date; provided that Seller shall have the right, from time to time, to designate any Exchange Business Day (which shall not be after the Scheduled Termination Date) to be a Termination Date (the “Accelerated Termination Date”) with respect to (x) any portion of the Prepayment Amount for such Transaction, provided that the aggregate percentage of the original Prepayment Amount for such Transaction as to which an Accelerated Termination Date has been designated shall not exceed the then-current Maximum Acceleration Percentage for such Transaction or (y) on or after the First Acceleration Date, all or any portion of the Prepayment Amount for such Transaction as to which an Accelerated Termination Date has not previously been designated (in each case of clause (x) or (y), such accelerated Prepayment Amount, the “Accelerated Amount”), in each case, by delivering notice to Counterparty of any such designation prior to the Acceleration Notice Deadline (as specified, with respect to each Transaction, in the relevant Supplemental Confirmation). If Seller designates an Accelerated Termination Date with respect to less than all of the Prepayment Amount, then upon the occurrence of such Accelerated Termination Date, the Transaction shall be considered two Transactions with terms identical to those of the original Transaction, except that (1) the first such resulting Transaction (the “Accelerated Transaction”) shall have (x) a Prepayment Amount equal to the Accelerated Amount, (y) a number of Initial Shares and a Delivered Number, rounded to the nearest whole number, equal to the corresponding number for the original Transaction multipliedby a fraction the numerator of which is the Accelerated Amount and the denominator of which is the Prepayment Amount for the original Transaction and (z) a Termination Date occurring on such Accelerated Termination Date and (2) the second such resulting Transaction (the “Remaining Transaction”) shall have (x) a Prepayment Amount equal to the Prepayment Amount for the original Transaction minus the Accelerated Amount and (y) a number of Initial Shares (if any) and a Delivered Number equal to the corresponding number for the original Transaction minus the corresponding number for the Accelerated Transaction. For the avoidance of doubt, following settlement of the Accelerated Transaction, the Remaining Transaction shall be treated for all purposes as the sole Transaction hereunder and may be subject to a further Accelerated Termination Date as set forth above. Any notice to be delivered by Seller of an Accelerated Termination Date pursuant to the foregoing shall specify an Accelerated Amount, if applicable.

Scheduled Termination Date: For each Transaction, as set forth in the related Supplemental Confirmation, subject to postponement as provided in “Valuation Disruption” below.

Maximum Acceleration

Percentage: For each Transaction, as set forth in the related Supplemental Confirmation.

First Acceleration Date: For each Transaction, as set forth in the related Supplemental Confirmation.

Valuation Disruption: The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “at any time during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time on any Scheduled Trading Day during the Calculation Period, Share Termination Valuation Period or Settlement Valuation Period” after the word “material,” in the third line thereof.

Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.

Notwithstanding anything to the contrary in the Equity Definitions, if a Disrupted Day occurs (i) in the Calculation Period, the Calculation Agent may, in its good faith and commercially reasonable discretion, postpone any one or more of the Scheduled Termination Date and the Calculation Period Start Date, or (ii) in the Share Termination Valuation Period or the Settlement Valuation Period, the Calculation Agent may extend the Share Termination Valuation Period or Settlement Valuation Period. The Calculation Agent may also determine whether (i) such Disrupted Day is a Disrupted Day in full, in which case the VWAP Price or value of Share Termination Delivery Units, as applicable, for such Disrupted Day shall not be included for purposes of determining the Forward Price, Share Termination Unit Price or the Settlement Price, as the case may be, or (ii) such Disrupted Day is a Disrupted Day only in part, in which case (x) the VWAP Price or value of Share Termination Delivery Units, as applicable, for such Disrupted Day shall be determined by the Calculation Agent based on Rule 10b-18 eligible transactions in the Shares or based on transactions in the Share Termination Delivery Units, as applicable, on such Disrupted Day taking into account the nature and duration of such Market Disruption Event and (y) in the case of a Disrupted Day during the Calculation Period or a Settlement Valuation Period, the Calculation Agent shall determine any Forward Price or Settlement Price based on an appropriately weighted average instead of the arithmetic average described in the definition thereof. Any Scheduled Trading Day on which the Exchange is scheduled to close prior to its normal close of trading shall be deemed to be a Disrupted Day in full.

The occurrence of a Disrupted Day during the Calculation Period, the Share Termination Valuation Period or the Settlement Valuation Period, as the case may be, and on each of the nine immediately following Scheduled Trading Days will constitute an Additional Termination Event, with Counterparty as the sole Affected Party and all Transactions hereunder as the Affected Transactions.

Settlement Terms:    

Settlement Procedures: If the Number of Shares to be Delivered is positive, Physical Settlement shall be applicable; provided that Seller does not, and shall not, make the agreement or the representations solely related to the restrictions imposed by applicable securities laws set forth in Section 9.11 of the Equity Definitions with respect to any Shares delivered by Seller to Counterparty under any Transaction. If the Number of Shares to be Delivered is negative, then the Counterparty Settlement Provisions in Annex A shall apply. Notwithstanding anything to the contrary herein or in the Equity Definitions, if the Number of Shares to be Delivered exceeds 16,000,000 Shares (the “Specified Number of Shares” and such excess, the “Excess Share Number”), then, in lieu of delivery of the full Number of Shares to be Delivered, Counterparty may elect no later than the first Exchange Business Day following the Termination Date, if it represents and warrants to Seller in writing on the date it notifies Seller of such election that, as of such date, it is not aware of any material non-public information concerning Counterparty or the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws, for settlement to consist of the Specified Number of Shares plus cash in an amount equal to the Partial Cash Settlement Amount, in which case (i) a number of Shares equal to the Excess Share Number shall be sold by Seller pursuant to

the conditions and procedures set forth under Section 3 or 4 (at Counterparty’s option) of Annex A hereto mutatis mutandis (as if such Shares were Registered Settlement Shares or Unregistered Settlement Shares that had been delivered by Counterparty to Seller), (ii) the “Partial Cash Settlement Amount” shall be the Net Proceeds generated by such sale, and (iii) Seller shall be obligated to deliver the Specified Number of Shares to Counterparty on the Settlement Date and pay the Partial Cash Settlement Amount to Counterparty promptly following Seller’s receipt of such Net Proceeds.

Number of Shares

to be Delivered: For each Transaction, a number of Shares equal to (a) (i) the Prepayment Amount divided by (ii) the Divisor Amount minus (b) the number of Shares (the “Delivered Number”) delivered by Seller pursuant to “Initial Share Delivery” below, if applicable.

Divisor Amount: For each Transaction, the Forward Price minus the Forward Price Adjustment Amount.

Excess Dividend Amount: For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.

Settlement Date: If the Number of Shares to be Delivered is positive, the date that is one Settlement Cycle immediately following the Termination Date.

Settlement Currency: USD

Initial Share Delivery: For each Transaction for which the number of Initial Shares is greater than zero (0) Shares, on each Initial Share Delivery Date, Seller shall deliver a number of Shares equal to the Initial Shares (or, in the case of multiple Initial Share Delivery Dates, the relevant portion thereof) to Counterparty in accordance with Section 9.4 of the Equity Definitions, with each such Initial Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4.

Initial Share Delivery Date(s): For each Transaction, as set forth in the related Supplemental Confirmation.

Initial Shares: For each Transaction, as set forth in the related Supplemental Confirmation.

Share Adjustments:

Potential Adjustment Event: Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, an Extraordinary Dividend shall not constitute a Potential Adjustment Event.

It shall constitute an additional Potential Adjustment Event if the Scheduled Termination Date for any Transaction is postponed pursuant to “Valuation Disruption” above, in which case the Calculation Agent may, in its commercially reasonable discretion, adjust any relevant terms of any such Transaction as the Calculation Agent determines appropriate to account for the economic effect on the Transaction of such postponement.

Extraordinary Dividend: For any calendar quarter, any dividend or distribution on the Shares with an ex-dividend date occurring during such calendar quarter, if (i) such dividend or distribution is not a dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions and (ii) in the case of a cash dividend or distribution, the amount per Share of such cash dividend or distribution, taken together with the amount of all previous cash dividends or distributions with ex-dividend dates occurring in the same calendar quarter, exceeds the Ordinary Dividend Amount.

Ordinary Dividend Amount: For each Transaction, as set forth in the related Supplemental Confirmation.

Method of Adjustment: Calculation Agent Adjustment

Extraordinary Events:

Consequences of

Merger Events:    

(a) Share-for-Share:        Modified Calculation Agent Adjustment

(b) Share-for-Other:        Cancellation and Payment

(c) Share-for-Combined:    Component Adjustment

Tender Offer:    Applicable

Consequences of

Tender Offers:    

(a) Share-for-Share:        Modified Calculation Agent Adjustment

(b) Share-for-Other:        Modified Calculation Agent Adjustment

(c) Share-for-Combined:    Modified Calculation Agent Adjustment

Consequences of

Acquisition

Announcement Events: Seller may elect, in its sole discretion, without prejudice to Sections 7 and 8 below, that the consequences set forth in Section 12.3(d) of the Equity Definitions shall apply to any Acquisition Announcement Event; provided that, for this purpose, references in Section 12.3(d) of the Equity Definitions to “Tender Offer” shall be replaced by references to “Acquisition Announcement Event” and references to “Tender Offer Date” shall be replaced by references to “Acquisition Announcement Date”.  An Acquisition Announcement Event shall be an “Extraordinary Event” for purposes of the Equity Definitions, to which Article 12 of the Equity Definitions is applicable.

Acquisition Announcement

Event: The occurrence of an Acquisition Announcement Date in respect of a potential Acquisition Transaction (as defined in Section 8 below).

Acquisition Announcement

Date: The date of the first public announcement of an event that, if consummated, would result in an Acquisition Transaction, or any publicly announced change or amendment to such potential Acquisition Transaction (including an announcement of the abandonment thereof).

Provisions Applicable to

Merger Events and

Tender Offers: The consequences set forth opposite “Consequences of Merger Events” or “Consequences of Tender Offers” above shall apply upon the occurrence of a Merger Event or Tender Offer regardless of whether such Merger Event or Tender Offer relates to an Acquisition Announcement Date for which an adjustment has been made pursuant to “Consequences of Acquisition Announcement Events” above, without duplication of any such adjustment.

Nationalization,

Insolvency or Delisting: Cancellation and Payment; provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall be deemed to be the Exchange.

Additional Disruption Events:

(a) Change in Law:    Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the word “Shares” with “Hedge Positions”; (ii) adding the phrase “or public announcement of” immediately after the phrase “due to the promulgation of or” in the third line thereof and adding the phrase “formal or informal” before the word “interpretation” in the same line and (iii) adding the words “(including, for the avoidance of doubt and without limitation, adoption or promulgation of new regulations authorized or mandated by existing statute)” after the word “regulation” in the second line thereof.

(b) Hedging Disruption:     Applicable; provided that:

(i) Section 12.9(a)(v) of the Equity Definitions is hereby amended by (a) adding immediately following the words “equity price risk” in the third and fourth lines thereof the words “, volatility risk, interest rate risk, legal risk and dividend risk” and (b) inserting the following phrase at the end of such Section: “For the avoidance of doubt, any such transactions or assets referred to in phrases (A) or (B) above must be available on commercially reasonable pricing terms.”; and

(ii) Section 12.9(b)(iii) of the Equity Definitions is hereby amended by inserting in the third line thereof, after the words “to terminate the Transaction”, the words “or a portion of the Transaction affected by such Hedging Disruption”.

(c) Increased Cost of Hedging:    Applicable; provided that Section 12.9(a)(vi) of the Equity Definitions is hereby amended by adding immediately following the words “equity price risk” in the fifth line thereof the words “, volatility risk, interest rate risk, legal risk and dividend risk”.

(d) Failure to Deliver:    Applicable

(e) Insolvency Filing:    Applicable

(f) Loss of Stock Borrow:    Applicable, it being understood that the rate to borrow Shares shall be determined by reference to the terms of a commercially reasonable share borrowing arrangement and without regard to the Hedging Party’s cost of funding in connection with such borrowings.

Maximum Stock Loan Rate:    200 basis points per annum

(g) Increased Cost of Stock Borrow:    Applicable, it being understood that the rate to borrow Shares shall be determined by reference to the terms of a commercially reasonable share borrowing arrangement and without regard to the Hedging Party’s cost of funding in connection with such borrowings.

Initial Stock Loan Rate:    25 basis points per annum

Hedging Party:    Seller

Determining Party:    Seller

Additional Termination Event(s): Notwithstanding anything to the contrary in the Equity Definitions, if, as a result of an Extraordinary Event, any Transaction would be cancelled or terminated (whether in whole or in part) pursuant to Article 12 of the Equity Definitions, an Additional Termination Event (with such terminated Transaction(s) (or portions thereof) being the Affected Transaction(s) and Counterparty being the sole Affected Party) shall be deemed to occur, and, in lieu of Sections 12.7, 12.8 and 12.9 of the Equity Definitions, Seller may elect for Section 6 of the Agreement to apply to such Affected Transaction(s).

Each of the following shall constitute an Additional Termination Event with Counterparty as the sole Affected Party and all Transactions hereunder as the Affected Transactions: (i) the

declaration by the Issuer of any Extraordinary Dividend, the ex-dividend date for which occurs or is scheduled to occur during the Relevant Dividend Period, (ii) the declaration by the Issuer of any dividend or distribution (other than an Extraordinary Dividend) for which the ex-dividend date occurs during the Relevant Dividend Period (as defined below) and is prior to the relevant Scheduled Ex-Dividend Date (as determined by the Calculation Agent), or (iii) the Issuer announces any change to the frequency of its regular dividend payments or expected regular dividend payments.

Scheduled Ex-Dividend Dates: For each Transaction, as set forth in the related Supplemental Confirmation.

Relevant Dividend Period:    The period from and including the Calculation Period Start Date, to and including the Relevant Dividend Period End Date.

Relevant Dividend Period

End Date: If the Number of Shares to be Delivered is negative, the last day of the Settlement Valuation Period; otherwise, the Termination Date.

Non-Reliance/Agreements and

Acknowledgements Regarding

Hedging Activities/Additional

Acknowledgements:        Applicable

Seller Payment Instructions: Bank: Bank of New York

ABA#: 021-000-018

Acct No.: 8900327634

Beneficiary: Deutsche Bank Securities Inc.

Counterparty’s Contact Details

for Purpose of Giving Notice: To be provided by Counterparty

Seller’s Contact Details for

Purpose of Giving Notice: Deutsche Bank Securities Inc.

60 Wall Street

New York, NY 10005

Attention: Paul Stowell

Telephone: 212-250-6270

Email: paul.stowell@db.com

With a copy to:

Attention: Spencer Cherniak

Telephone: 212-250-7720

Email: spencer.cherniak@db.com

And email notification to the following address:

charles.nail@db.com

Calculation Agent: Seller; provided that, following the occurrence and during the continuation of an Event of Default pursuant to Section 5(a)(vii) of the Agreement with respect to which Seller is the Defaulting Party, Counterparty shall have the right to select a leading dealer in the market for U.S. corporate equity derivatives reasonably acceptable to Seller to replace Seller as Calculation Agent, and the parties shall work in good faith to execute any appropriate documentation required by such replacement Calculation Agent.

2. Additional Mutual Representations, Warranties and Covenants.

(a)Eligible Contract Participant. In addition to the representations, warranties and covenants in the Agreement, each party represents, warrants and covenants to the other party that it is an “eligible contract participant”, as defined in the U.S. Commodity Exchange Act (as amended), and is entering into each Transaction hereunder as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not for the benefit of any third party.

(b)Accredited Investor and Qualified Institutional Buyer. Each party acknowledges that the offer and sale of each Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof. Accordingly, each party represents and warrants to the other that (i) it has the financial ability to bear the economic risk of its investment in each Transaction and is able to bear a total loss of its investment and (ii) it is an “accredited investor” as that term is defined under Regulation D under the Securities Act.

3.Additional Representations, Warranties and Covenants of Counterparty. In addition to the representations, warranties and covenants in the Agreement, Counterparty represents, warrants and covenants to Seller that:

(a)The purchase of Shares by Counterparty from Seller pursuant to, and Counterparty’s entry into, each Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act.

(b)It is not entering into any Transaction, and will not make any settlement election hereunder, (i) on the basis of, and is not aware of, any material non-public information with respect to Counterparty or the Shares, (ii) in anticipation of or to facilitate, a distribution of its securities, a self tender offer or a third-party tender offer or (iii) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares).

(c)Each Transaction (A) has been approved by its Board of Directors and publicly announced or (B) is being entered into pursuant to a publicly-disclosed Share buy-back program that has been approved by its Board of Directors and its Board of Directors has approved the use of one or more accelerated share repurchase transactions to effect the Share buy-back program.

(d)Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty acknowledges that Seller is not making any representations or warranties with respect to the treatment of the Transaction under any accounting standards including, but not limited to, ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging - Contracts in Entity’s Own Equity.

(e)As of (i) the date hereof and (ii) the Trade Date for each Transaction hereunder, Counterparty is in compliance with its reporting obligations under the Exchange Act and its most recent Annual Report on Form 10-K, together with all reports subsequently filed by it pursuant to the Exchange Act, taken together and as amended and supplemented to the date of this representation, do not, as of their respective filing dates, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

(f)Counterparty shall report each Transaction to the extent required under the Exchange Act and the rules and regulations thereunder.

(g)Counterparty will not engage in a “distribution” (as defined in Regulation M promulgated under the Exchange Act) of the Shares or of any security for which the Shares are a “reference security” (as defined in Regulation M promulgated under the Exchange Act) at any time during any Regulation M Period (as defined below) for any Transaction. “Regulation M Period” means, for any Transaction, (i) the Relevant Period (as defined below) and (ii) the Share Termination Valuation Period, if any, and the Settlement Valuation Period, if any, for such Transaction and, in the case of this clause (ii), the first Exchange Business Day following the end of the relevant period. “RelevantPeriod” means, for any Transaction, the period commencing on the Calculation Period Start Date for such Transaction and ending on the earlier of (x) the Scheduled Termination Date and (y) the last Additional Relevant Day (as specified in the related Supplemental Confirmation) for such Transaction, or such earlier day as elected by Seller and communicated to Counterparty on such day (or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to “Special Provisions for Acquisition Transaction Announcements” below).

(h)As of the Trade Date, the Prepayment Date, each Initial Share Delivery Date (if applicable), any Cash Settlement Payment Date, any Share Termination Payment Date, any Settlement Method Election Date, any date on which Counterparty delivers a Notice of Share Termination and any Settlement Date for each Transaction, Counterparty is not, and will not be, “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “BankruptcyCode”)) and Counterparty would be able to purchase a number of Shares with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of Counterparty’s incorporation.

(i)Counterparty is not, and after giving effect to any Transaction will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.

(j)Counterparty has not entered, and will not enter, into any share repurchase transaction (including, without limitation, any agreements similar to the Transactions described herein), or any derivative unwind agreement or amendment of a derivative transaction, where any initial hedge period, initial period, calculation period, relevant period, settlement valuation period, unwind period or adjustment period (each however defined) in such other transaction will overlap at any time (including as a result of extensions in such initial hedge period, initial period, calculation period, relevant period, settlement valuation period, unwind period or adjustment period as provided in the relevant agreements) with any Relevant Period or, if applicable, any Settlement Valuation Period under this Master Confirmation, or any hedge or hedge unwind purchases of Shares would otherwise reasonably be expected to be made by the counterparty thereunder during any Relevant Period or Settlement Valuation Period hereunder. In the event that the initial hedge period, initial period, relevant period, calculation period, settlement valuation period, unwind period or adjustment period in such other transaction or unwind agreement or amendment overlaps with, or any purchases of Shares would otherwise reasonably be expected to be made by the counterparty thereunder during, any Relevant Period or, if applicable, or Settlement Valuation Period under this Master Confirmation as a result of any postponement of the Scheduled Termination Date or extension of the Settlement Valuation Period pursuant to “Valuation Disruption” above or any analogous provision in such other transaction, Counterparty shall promptly amend such share repurchase or other derivative transaction or unwind agreement to avoid any such overlap.

(k)Counterparty received on or prior to the Trade Date a letter from Deutsche regarding FINRA Rule 5320 and does not object to the practices described in such letter.

4.Regulatory Disruption. In the event that Seller concludes, in its reasonable discretion and based on advice of counsel, that it is appropriate with respect to any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Seller), for it to refrain from or decrease any market activity relating to the Transaction on any Scheduled Trading Day or Days during the Calculation Period or, if applicable, the Share Termination Valuation Period or the Settlement Valuation Period, Seller may by written notice to Counterparty elect to deem that a Market Disruption Event has occurred and will be continuing on such Scheduled Trading Day or Days; provided that any Disrupted Day resulting from a Regulatory Disruption solely on account of such policies or procedures shall be deemed to be a Disrupted Day in full. Seller shall subsequently notify Counterparty in writing promptly following Seller’s reasonable determination in good faith and upon the advice of counsel that it may resume its market activity. Seller shall not be required to communicate to Counterparty the reason for Seller’s exercise of its rights pursuant to this provision if Seller reasonably determines in good faith and upon the advice of counsel that disclosing such reason may result in a violation of any legal, regulatory, or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Seller).

5.10b5-1 Plan. Counterparty represents, warrants and covenants to Seller that:

(a)Counterparty is entering into this Master Confirmation and each Transaction hereunder in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or position with respect to the Shares. Counterparty and Seller each acknowledges that it is the intent of the parties that each Transaction entered into under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 and each Transaction entered into under this Master Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c).

(b)Counterparty will not seek to control or influence Seller’s decision to make any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under any Transaction entered into under this Master Confirmation, including, without limitation, Seller’s decision to enter into any hedging transactions. Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation of this Master Confirmation and each Supplemental Confirmation under Rule 10b5-1.

(c)Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Master Confirmation or the relevant Supplemental Confirmation must be effected in accordance with the requirements for the amendment

or termination of a “plan” as defined in Rule 10b5-1(c). Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is aware of any material non-public information regarding Counterparty or the Shares.

6.Counterparty Purchases. Counterparty (or any “affiliated purchaser” as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall not, without the prior written consent of Seller, directly or indirectly purchase any Shares (including by means of a derivative instrument or derivative unwind agreement or amendment), listed contracts on the Shares or securities that are convertible into, or exchangeable or exercisable for, Shares (including, without limitation, any Rule 10b-18 purchases of blocks (as defined in Rule 10b-18)) during any Relevant Period or, if applicable, the Share Termination Valuation Period or the Settlement Valuation Period, except through Seller and except for Shares to be delivered to Counterparty by Morgan Stanley & Co. International plc in connection with settlement of partial termination of call option transactions dated November 8, 2010 and November 10, 2010; provided that Counterparty does not reasonably expect that such partial termination will result in any purchases of Shares, listed contracts on the Shares or securities convertible into, or exchangeable or exercisable for, Shares during any of the foregoing periods.

7.Special Provisions for Merger Transactions. Notwithstanding anything to the contrary herein or in the Equity Definitions:

(a)Counterparty agrees that it:

(i)will not during the period commencing on the Trade Date through the end of the Relevant Period or, if applicable, the Share Termination Valuation Period or the Settlement Valuation Period for any Transaction make, or permit to be made (to the extent within Counterparty’s control), any public announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction unless such public announcement is made prior to the opening or after the close of the regular trading session on the Exchange for the Shares;

(ii)shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify Seller following any such announcement that such announcement has been made; and

(iii)shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide Seller with written notice specifying (i) Counterparty’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement date that were not effected through Seller or its affiliates and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the announcement date. Such written notice shall be deemed to be a certification by Counterparty to Seller that such information is true and correct. In addition, Counterparty shall promptly notify Seller of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders. Counterparty acknowledges that any such notice may cause the terms of any Transaction to be adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 5 above.

(b)Upon the public announcement of any Merger Transaction, without prejudice to the provisions in Sections 12.2 or 12.3 of the Equity Definitions relating to the occurrence of a Merger Event or Tender Offer, the provisions set forth in “Consequences of Acquisition Announcement Events” in Section 1 above or Section 8 below, Seller in its commercially reasonable discretion may treat the occurrence of such public announcement as an Additional Termination Event with Counterparty as the sole Affected Party and the Transactions hereunder as the Affected Transactions and with the amount under Section 6(e) of the Agreement determined taking into account the fact that the Calculation Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated.

“Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange Act.

8.Special Provisions for Acquisition Transaction Announcements.

(a)Without prejudice to the provisions in Sections 12.2 and 12.3 of the Equity Definitions relating to the occurrence of a Merger Event or Tender Offer, the provisions set forth in “Consequences of Acquisition Announcement Events” in Section 1 above or Section 7 above, if an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the First Acceleration Date of any Transaction, the First Acceleration Date shall be the date of such Acquisition Transaction Announcement and, notwithstanding anything to the contrary herein or in the Supplemental Confirmation, the Maximum Acceleration Percentage shall be 100% from and after such date.

(b)“Acquisition Transaction Announcement” means (i) the announcement of an event that, if consummated, would result in an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, (iii) the announcement of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an Acquisition Transaction, or (iv) any other announcement or public statement that in the reasonable judgment of the Calculation Agent may result in an Acquisition Transaction. For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement refer to any public announcement, whether made by the Issuer or a third party.

(c)“Acquisition Transaction” means (i) any Merger Event (for purposes of this definition, the definition of Merger Event shall be read with the references therein to “100%” being replaced by “20%” and references to “50%” being replaced by “66%” and without reference to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Counterparty with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction, (iv) any acquisition, lease, exchange, transfer, disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds the Specified Acquisition Percentage (as specified, with respect to each Transaction, in the relevant Supplemental Confirmation) of the market capitalization of Counterparty and (v) any transaction in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise).

9.Acknowledgments.

(a)    The parties hereto intend for:

(i)each Transaction to be a “securities contract” as defined in Section 741(7) of the Bankruptcy Code and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(27), 362(o), 546(e), 546(j), 555, 556, 560 and 561 of the Bankruptcy Code;

(ii)the Agreement to be a “master netting agreement” as defined in Section 101(38A) of the Bankruptcy Code;

(iii)a party’s right to liquidate, terminate or accelerate any Transaction, net out or offset termination values or payment amounts, and to exercise any other remedies upon the occurrence of any Event of Default or Termination Event under the Agreement with respect to the other party or any Extraordinary Event that results in the termination or cancellation of any Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code); and

(iv)all payments for, under or in connection with each Transaction, all payments for the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in the Bankruptcy Code).

(b)     Counterparty acknowledges that:

(i)    during the term of any Transaction, Seller and its affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to such Transaction;

(ii)    Seller and its affiliates may also be active in the market for the Shares other than in connection with hedging activities in relation to any Transaction;

(iii)    Seller shall make its own determination as to whether, when or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the VWAP Price;

(iv)    any market activities of Seller and its affiliates with respect to the Shares may affect the market price and volatility of the Shares, as well as the Forward Price and VWAP Price, each in a manner that may be adverse to Counterparty; and

(v)    each Transaction is a derivatives transaction in which it has granted Seller an option; Seller may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of the related Transaction.

10.Amendments to Equity Definitions.

(i)Section 11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the word “an”; and adding the phrase “or such Transaction” at the end of the sentence;

(ii) Section 11.2(c) of the Equity Definitions is hereby amended by (A) replacing the words “a diluting or concentrative” with “an” in the fifth line thereof, (B) adding the phrase “or such Transaction” after the words “the relevant Shares” in the same sentence, (C) deleting the words “dilutive or concentrative” in the sixth to last line thereof, and (D) deleting the phrase “(provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Shares)” and replacing it with the phrase “(and, for the avoidance of doubt, adjustments may be made to account solely for changes in volatility, stock loan rate or liquidity relative to the relevant Shares)”;

(iii)Section 11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing them with the words “a material”; and adding the phrase “or the relevant Transaction” at the end of the sentence;

(iv)Section 12.9(b)(iv) of the Equity Definitions is hereby amended by (A) deleting (1) subsection (A) in its entirety, (2) the phrase “or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); and (B) deleting the phrase “neither the Non-Hedging Party nor the Lending Party lends Shares in the amount of the Hedging Shares or” in the penultimate sentence; and

(v)Section 12.9(b)(v) of the Equity Definitions is hereby amended by (A) adding the word “or” immediately before subsection “(B)” and deleting the comma at the end of subsection (A); and (B)(1) deleting subsection (C) in its entirety, (2) deleting the word “or” immediately preceding subsection (C); (3) replacing in the penultimate sentence the words “either party” with “the Hedging Party” and (4) deleting clause (X) in the final sentence.

11.Credit Support Documents. The parties hereto acknowledge that no Transaction hereunder is secured by any collateral that would otherwise secure the obligations of Counterparty herein or pursuant to the Agreement.

12.Set-off. The parties agree to amend Section 6 of the Agreement by adding a new Section 6(f) thereto as follows:

“(f) Upon the occurrence of an Event of Default or Termination Event with respect to a party who is the Defaulting Party or the Affected Party (“X”), the other party (“Y”) will have the right (but not be obliged) without prior notice to X or any other person to set-off or apply any Equity Contract obligation of X owed to Y (or any Affiliate of Y) (whether or not matured or contingent and whether or not arising under the Agreement, and regardless of the currency, place of payment or booking office of the obligation) against any Equity Contract obligation of Y (or any Affiliate of Y) owed to X (whether or not matured or contingent and whether or not arising under the Agreement, and regardless of the currency, place of payment or booking office of the obligation). Y will give notice to the other party of any set-off effected under this Section 6(f).

Amounts (or the relevant portion of such amounts) subject to set-off may be converted by Y into the Termination Currency at the rate of exchange at which such party would be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such currency. If any obligation is unascertained, Y may in good faith estimate that obligation and set-off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained. Nothing in this Section 6(f) shall be effective to create a charge or other security interest. This Section 6(f) shall be without prejudice and in addition to any right of set-off, combination of accounts, lien or other right to which any party is at any time otherwise entitled (whether by operation of law, contract or otherwise).”

“Equity Contract” means any transaction or instrument that does not convey to Seller rights, or the ability to assert claims, that are senior to the rights and claims of common stockholders in the event of Counterparty’s bankruptcy.

13.Delivery of Shares. Notwithstanding anything to the contrary herein, Seller may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the

aggregate number of Shares and other securities so delivered on or prior to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date.

14.Share Termination Alternative. If either party would owe the other party any amount pursuant to Article 12 of the Equity Definitions or Section 6(d)(ii) of the Agreement (a “Payment Obligation”), then, unless Counterparty makes an election to the contrary with respect to all or any portion of such Payment Obligation by giving irrevocable telephonic notice to Seller, confirmed in writing within one Scheduled Trading Day, no later than 9:30 A.M. New York City time on the Early Termination Date or date on which the Transaction is terminated, any such Payment Obligation shall be satisfied by the Share Termination Alternative (as defined below) provided that (A) unless Seller elects to have all or any portion of such Payment Obligation satisfied by the Share Termination Alternative, the Share Termination Alternative shall not apply in the event of (i) an Insolvency, a Nationalization or a Merger Event, in each case, in which the Shares have changed into solely cash or solely the right to receive cash or (ii) an Event of Default in which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party, which Event of Default or Termination Event resulted from an event or events within Counterparty’s control and (B) Counterparty may only so elect if Counterparty represents and warrants to Seller in writing on the date it notifies Seller of its election that, as of such date, Counterparty is not aware of any material non-public information concerning Counterparty or the Shares and is so electing in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws. The following provisions shall apply on the Scheduled Trading Day immediately following the Early Termination Date or date on which the Transaction is terminated with respect to the Payment Obligation or such portion of the Payment Obligation for which the Share Termination Alternative applies (the “Applicable Portion”):

Share Termination Alternative: Applicable and means (x) if delivery pursuant to the Share Termination Alternative is owed by Seller, that Seller shall deliver to Counterparty the Share Termination Delivery Property on the date on which the Payment Obligation would otherwise be due pursuant to Article 12 of the Equity Definitions or Section 6(d)(ii) of the Agreement, as applicable, or such later date as Seller may reasonably determine (the “Share Termination Payment Date”), in satisfaction of the Payment Obligation or the Applicable Portion, as the case may be, and (y) if delivery pursuant to the Share Termination Alternative is owed by Counterparty, paragraphs 2 through 7 of Annex A shall apply as if such delivery were a settlement of the Transaction to which Net Share Settlement (as defined in Annex A) applied, the Cash Settlement Payment Date were the Early Termination Date, the Forward Cash Settlement Amount were zero minus the Payment Obligation (or the Applicable Portion, as the case may be) owed by Counterparty, and “Shares” as used in Annex A were replaced by “Share Termination Delivery Units”.

Share Termination Delivery

Property: A number of Share Termination Delivery Units, as calculated by the Calculation Agent, equal to the Payment Obligation (or the Applicable Portion, as the case may be) divided by the Share Termination Unit Price. The Calculation Agent shall adjust the Share Termination Delivery Property by replacing any fractional portion of a security therein with an amount of cash equal to the value of such fractional security based on the values used to calculate the Share Termination Unit Price.

Share Termination Unit Price: Either (x) the value of property contained in one Share Termination Delivery Unit on the date such Share Termination Delivery Units are to be delivered as Share Termination Delivery Property or (y) an appropriately weighted average of the values of such property over a valuation period reasonably selected by Seller following the relevant Early Termination Date or date on which the Transaction is terminated (the “Share Termination Valuation Period”), at Seller’s election, in each case such value or average of values to be determined by the Calculation Agent by commercially reasonable means and notified by the Calculation Agent to the parties prior to the Share Termination Payment Date.

Share Termination Delivery Unit: One Share or, if as the result of an Insolvency, Nationalization or Merger Event, the Shares have changed into other property or the right to receive other property, a unit consisting of the number or amount of each type of property received by a holder of one Share (without consideration of any requirement to pay cash or other consideration in lieu of fractional amounts of any securities) in such Insolvency, Nationalization or Merger Event. If such Insolvency, Nationalization or Merger Event involves a choice of consideration to be

received by holders, Seller shall determine the composition of consideration such holder shall be deemed to have elected to receive in its sole discretion.

Failure to Deliver: Applicable

Other applicable provisions: If Share Termination Alternative is applicable, the provisions of Sections 9.8, 9.9, 9.10, 9.11 (except that the Representation and Agreement contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable securities laws arising as a result of the fact that Counterparty is the issuer of the Shares or any portion of the Share Termination Delivery Units) and 9.12 of the Equity Definitions will be applicable as if “Physical Settlement” applied to the Transaction, except that all references to “Shares” shall be read as references to “Share Termination Delivery Units”.

15.Calculations and Payment Date upon Early Termination. The parties acknowledge and agree that in calculating Loss pursuant to Section 6 of the Agreement Seller may (but need not) determine losses without reference to actual losses incurred but based on expected losses assuming a commercially reasonable (including without limitation with regard to reasonable legal and regulatory guidelines) risk bid were used to determine loss to avoid awaiting the delay associated with closing out any hedge or related trading position in a commercially reasonable manner prior to or promptly following the designation of an Early Termination Date. Notwithstanding anything to the contrary in Section 6(d)(ii) of the Agreement, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement will be payable on the day that notice of the amount payable is effective; provided that if Counterparty elects to receive or deliver Shares or Share Termination Delivery Units in accordance with Section 14, such Shares or Share Termination Delivery Units shall be delivered on the Share Termination Payment Date or Cash Settlement Payment Date, as applicable.

16.Automatic Termination Provisions. Notwithstanding anything to the contrary in Section 6 of the Agreement, if a Termination Price is specified in any Supplemental Confirmation, then an Additional Termination Event with Counterparty as the sole Affected Party and the Transaction to which such Supplemental Confirmation relates as the Affected Transaction will automatically occur without any notice or action by Seller or Counterparty if the closing price of the Shares on the Exchange for any two consecutive Exchange Business Days during the period from, but excluding, the Trade Date to, and including, the First Acceleration Date is below such Termination Price, and the second consecutive Exchange Business Day during such period on which the closing price of the Shares on the Exchange is below the Termination Price will be the “Early Termination Date” for purposes of the Agreement.

17.Delivery of Cash. For the avoidance of doubt, nothing in this Master Confirmation shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the Transactions contemplated by this Master Confirmation following payment by Counterparty of the relevant Prepayment Amount, except in circumstances where the required cash settlement thereof is permitted for classification of the contract as equity by ASC Topic 815-40, Derivatives and Hedging - Contracts in Entity’s Own Equity as in effect on the relevant Trade Date (including, without limitation, where Counterparty so elects to deliver cash or fails timely to elect to deliver Shares or Share Termination Delivery Units in respect of the settlement of such Transactions).

18.Claim in Bankruptcy. Seller acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to any Transaction that are senior to the claims of common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided that nothing herein shall limit or shall be deemed to limit Seller’s right to pursue remedies in the event of a breach of Counterparty of its obligations and agreements with respect to the Transactions outside of Counterparty’s bankruptcy; provided, further that nothing herein shall limit or shall be deemed to limit Seller’s rights in respect of any transaction other than the Transaction.

19.Wall Street Transparency and Accountability Act. In connection with Section 739 of the Wall Street Transparency and Accountability Act of 2010 (“WSTAA”), the parties hereby agree that neither the enactment of WSTAA or any regulation under the WSTAA, nor any requirement under WSTAA or an amendment made by WSTAA, shall limit or otherwise impair either party’s otherwise applicable rights to terminate, renegotiate, modify, amend or supplement this Master Confirmation, any Supplemental Confirmation or the Agreement, as applicable, arising from a termination event, force majeure, illegality, increased costs, regulatory change or similar event under this Master Confirmation, the Equity Definitions incorporated herein, or the Agreement (including, but not limited to, rights arising from Change in Law, Hedging Disruption, Increased Cost of Hedging, or Illegality (as defined in the Agreement)).

20.2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol.The parties agree that Parts I and III of the Attachment to the terms of the 2013 EMIR Portfolio Reconciliation, Dispute Resolution and Disclosure Protocol published by ISDA on July 19, 2013 (“Protocol”) apply to the Agreement as if the parties had adhered to the Protocol without amendment.

In respect of the Attachment to the Protocol, (i) the definition of “Adherence Letter” shall be deemed to be deleted and references to “Adherence Letter” shall be deemed to be to this Section 20 (and references to “such party’s Adherence Letter” and “its Adherence Letter” shall be read accordingly), (ii) references to “adheres to the Protocol” shall be deemed to be “enters into the Agreement”, (iii) references to “Protocol Covered Agreement” shall be deemed to be references to the Agreement (and each “Protocol Covered Agreement” shall be read accordingly), and (iv) references to “Implementation Date” shall be deemed to be references to the date of this Agreement. For the purposes of this Section 20:

(i)Deutsche is a Portfolio Data Sending Entity and Counterparty is a Portfolio Data Receiving Entity.

(ii)Deutsche and Counterparty may use a Third Party Service Provider, and each of Deutsche and Counterparty consents to such use including the communication of the relevant data in relation to Deutsche and Counterparty to such Third Party Service Provider for the purposes of the reconciliation services provided by such entity.

(iii)The Local Business Days for such purposes in relation to Deutsche are New York and in relation to Counterparty are New York.

(iv)The provisions in this paragraph shall survive the termination of this Transaction.

(v)The following are the applicable email addresses.

Portfolio Data:        Deutsche: collateral.disputes@db.com

Counterparty: Treasurer@radian.biz

Notice of discrepancy:    Deutsche: collateral.disputes@db.com

Counterparty: Treasurer@radian.biz

Dispute Notice:        Deutsche: collateral.disputes@db.com

Counterparty: Treasurer@radian.biz

21.NFC Representation Protocol. The parties agree that the provisions set out in the Attachment to the ISDA 2013 EMIR NFC Representation Protocol published by ISDA on March 8, 2013 (the “NFC Representation Protocol”) shall apply to the Agreement as if each party were an Adhering Party under the terms of the NFC Representation Protocol. In respect of the Attachment to the Protocol, (i) the definition of “Adherence Letter” shall be deemed to be deleted and references to “Adherence Letter” shall be deemed to be to this Section 21 (and references to “the relevant Adherence Letter” and “its Adherence Letter” shall be read accordingly), (ii) references to “adheres to the Protocol” shall be deemed to be “enters into the Agreement”, (iii) references to “Covered Master Agreement” shall be deemed to be references to the Agreement (and each “Covered Master Agreement” shall be read accordingly), and (iv) references to “Implementation Date” shall be deemed to be references to the date of the Agreement. Counterparty confirms that it enters into the Agreement as a party making the NFC Representation (as such term is defined in the NFC Representation Protocol). Counterparty shall promptly notify Deutsche of any change to its status as a party making the NFC Representation.

22.Transaction Reporting - Consent for Disclosure of Information. Notwithstanding anything to the contrary herein or in the Agreement or any non-disclosure, confidentiality or other agreements entered into between the parties from time to time, each party hereby consents to the Disclosure of information (the “Reporting Consent”):

(i)to the extent required by, or necessary in order to comply with, any applicable law, rule or regulation which mandates Disclosure of transaction and similar information or to the extent required by, or necessary in order to comply with, any order, request or directive regarding Disclosure of transaction and similar information issued by any relevant authority or body or agency (“Reporting Requirements”); or

(ii)    to and between the other party’s head office, branches or affiliates; to any person, agent, third party or entity who provides services to such other party or its head office, branches or affiliates; to a Market; or to any trade data repository or any systems or services operated by any trade repository or Market, in each case, in connection with such Reporting Requirements.

“Disclosure” means disclosure, reporting, retention, or any action similar or analogous to any of the aforementioned.

“Market” means any exchange, regulated market, clearing house, central clearing counterparty or multilateral trading facility.

Disclosures made pursuant to this Reporting Consent may include, without limitation, Disclosure of information relating to disputes over transactions between the parties, a party’s identity, and certain transaction and pricing data and may result in such information becoming available to the public or recipients in a jurisdiction which may have a different level of protection for personal data from that of the relevant party’s home jurisdiction.

This Reporting Consent shall be deemed to constitute an agreement between the parties with respect to Disclosure in general and shall survive the termination of this Confirmation. No amendment to or termination of this Reporting Consent shall be effective unless such amendment or termination is made in writing between the parties and specifically refers to this Reporting Consent.

23.    Governing Law. The Agreement, the Trade Documents and all matters arising in connection with the Agreement and the Trade Documents shall be governed by, and construed and enforced in accordance with, the laws of the State of New York (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law). THE PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO, THESE COURTS.

24.    Waiver of Trial by Jury. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE AGREEMENT, THE TRADE DOCUMENTS OR ANY TRANSACTION.

25.    Offices.

(a)    The Office of Seller for each Transaction is London.

(b)    The Office of Counterparty for each Transaction is: Not Applicable.

26.    Method of Delivery. Whenever delivery of funds or other assets is required hereunder by or to Counterparty, such delivery shall be effected through DBSI. In addition, all notices, demands and communications of any kind relating to any Transaction between Deutsche and Counterparty shall be transmitted exclusively through DBSI.

27.    Calculations, Adjustments and Determinations. All calculations, adjustments and determinations made by Seller hereunder, whether as Calculation Agent, as Determining Party or following the occurrence of an Early Termination Date, shall be made in good faith and in a commercially reasonable manner. Following any determination, adjustment or calculation by Seller hereunder (including, without limitation, in its capacity as Calculation Agent), Seller shall deliver to Counterparty, within five Exchange Business Days after a written request by Counterparty, a report in a commonly used file format for the storage and manipulation of financial data (including the methodology, interest rates, quotations and market data (including volatility) but without disclosing any proprietary or confidential models or other proprietary or confidential information) displaying in reasonable detail the basis for such determination, adjustment or calculation, as the case may be.

28.    Counterparts.    This Master Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Master Confirmation by signing and delivering one or more counterparts.

29.     Condition to Effectiveness. In the event the sale of Counterparty’s 5.250% Senior Notes due 2020 (the “Senior Notes”) is not consummated with the underwriters thereof for any reason by the close of business in New York on June 19, 2015 (or such later date as agreed upon by the parties) (June 19, 2015 or such later date as agreed upon being the “Early Unwind Date”), the Transaction entered into on June 18, 2015 shall automatically terminate (the “Early Unwind”) on the Early Unwind Date and (a) such Transaction and all of the respective rights and obligations of Seller and Counterparty under the Transaction shall be cancelled and terminated and (b) each party shall be released and discharged by the other party from and agrees not to make any claim against the other party with respect to any obligations or liabilities of the other party arising out of and to be performed in connection with such Transaction either prior to or after the Early Unwind Date; provided that Counterparty shall purchase from Seller, on the first Exchange Business Day after the Early Unwind Date, any Shares purchased by Seller or one or more of its affiliates in connection with such Transaction for a purchase price equal to the price paid by Seller and/or its affiliates for such Shares, and reimburse the cost of derivatives and other hedging activities entered into by Seller or one or more of its affiliates and any other losses incurred by Seller, in connection with such Transaction and termination thereof, including the unwind of Seller’s hedging activities. Such amounts shall be paid in immediately available funds on the first Exchange Business Day after the Early Unwind Date. Seller and Counterparty represent and acknowledge to the other that, subject to the proviso included in the second preceding sentence, upon an Early Unwind, all obligations with respect to such Transaction shall be deemed fully and finally discharged. Counterparty

shall so notify Seller (i) immediately upon consummation of the Senior Notes sale, or (ii) by 4:00 p.m. New York time on the Early Unwind Date if the Senior Notes sale has not been consummated prior to such time.

Counterparty hereby agrees (a) to check this Master Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Seller) correctly sets forth the terms of the agreement between Seller and Counterparty with respect to any particular Transaction to which this Master Confirmation relates, by manually signing this Master Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Seller.

Yours faithfully,

DEUTSCHE BANK AG, LONDON BRANCH

By: /s/ Lars Kestner

Name:    Lars Kestner

Title:    Attorney in Fact

By: /s/ Andrew Yaeger

Name:    Andrew Yaeger

Title:    Manageing Director

DEUTSCHE BANK SECURITIES INC.,

acting solely as Agent in connection with the Transaction

By: /s/ Lars Kestner

Name:    Lars Kestner

Title:    Managing Director

By: /s/ Paul Stowell

Name:    Paul Stowell

Title:    Managing Director

Agreed and Accepted By:

RADIAN GROUP INC.

By: /s/ J. Franklin Hall

Name:    J. Franklin Hall

Title:    Executive Vice President and Chief Financial Officer

Chairman of the Supervisory Board: Dr. Paul Achleitner.  Management Board: Jürgen Fitschen (Co-Chairman), Anshu Jain (Co-Chairman), Stefan Krause, Stephan Leithner, Stuart Lewis, Rainer Neske and Henry Ritchotte. Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervising Authority) and by the Prudential Regulation Authority and subject to limited regulation by the Prudential Regulation Authority and Financial Conduct Authority. Deutsche Bank AG, London Branch is a member of the London Stock Exchange. Deutsche Bank AG is a joint stock corporation with limited liability incorporated in the Federal Republic of Germany HRB No. 30 000 District Court of Frankfurt am Main; Branch Registration in England and Wales BR000005; Registered address: Winchester House, 1 Great Winchester Street, London EC2N 2DB. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available on request or from https://www.db.com/en/content/eu_disclosures_uk.htm.

SCHEDULE A

Deutsche Bank

Deutsche Bank AG, London Branch

Winchester house

1 Great Winchester St, London EC2N 2DB

Telephone: 44 20 7545 8000

c/o Deutsche Bank Securities Inc.

60 Wall Street

New York, NY 10005

Telephone: 212-250-2500

Internal Reference: 639313

SUPPLEMENTAL CONFIRMATION

To:	Radian Group Inc. 1601 Market Street Philadelphia, PA 19103
Subject:	Accelerated Stock Buyback
Date:	[ ]

The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction entered into between Deutsche Bank AG, London Branch (“Seller” or “Deutsche”), with Deutsche Bank Securities Inc. acting as agent, and Radian Group Inc. (“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This Supplemental Confirmation is a binding contract between Seller and Counterparty as of the relevant Trade Date for the Transaction referenced below.

1.    This Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation dated as of June 18, 2015 (the “Master Confirmation”) between the Contracting Parties, as amended and supplemented from time to time. All provisions contained in the Master Confirmation govern this Supplemental Confirmation except as expressly modified below.

2.    The terms of the Transaction to which this Supplemental Confirmation relates are as follows:

Trade Date:	[ ]
Calculation Period Start Date:	[ ]
Forward Price Adjustment Amount:	USD[ ]
Scheduled Termination Date:	[ ]
Maximum Acceleration Percentage:	[ ]
First Acceleration Date:	[ ]
Prepayment Amount:	USD[ ]
Prepayment Date:	[ ]
Initial Share Delivery Dates:	[ ]
Initial Shares:	[ ] Shares; provided that if, in connection with the Transaction, on any Initial Share Delivery Date, Seller is unable to borrow a number of Shares equal to the relevant Initial Shares for delivery to Counterparty at a borrow cost not greater than the Initial Stock Loan Rate, the Initial Shares to be delivered on such Initial Share Delivery Date shall be reduced to such number of Shares that Seller is able to so borrow, and the remaining Initial Shares with respect to such Initial Share Delivery Date shall be delivered as promptly as practicable thereafter
Ordinary Dividend Amount:	USD[ ]
Scheduled Ex-Dividend Dates:	[ ]

Termination Price:	USD[ ]
Additional Relevant Days:	The[ ] Exchange Business Day(s) immediately following the Calculation Period.
Specified Acquisition Percentage	[ ]
Acceleration Notice Deadline:	[ ]

3.    Counterparty represents and warrants to Seller that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either (i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs.

4.    This Supplemental Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts.

5.    Each party hereby acknowledges and repeats the representations, warranties and covenants made by such party in the Master Confirmation.

Counterparty hereby agrees (a) to check this Supplemental Confirmation carefully and immediately upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing (in the exact form provided by Seller) correctly sets forth the terms of the agreement between Seller and Counterparty with respect to the Transaction to which this Supplemental Confirmation relates, by manually signing this Supplemental Confirmation or this page hereof as evidence of agreement to such terms and providing the other information requested herein and immediately returning an executed copy to Seller.

Yours faithfully,

DEUTSCHE BANK AG, LONDON BRANCH

By: ______________________________

Name:    

Title:    

By: ______________________________

Name:    

Title:    

DEUTSCHE BANK SECURITIES INC.,

acting solely as Agent in connection with the Transaction

By: ______________________________

Name:    

Title:    

By: ______________________________

Name:    

Title:    

Agreed and Accepted By:

RADIAN GROUP INC.

By:        

Name:    

Title:    

ANNEX A

COUNTERPARTY SETTLEMENT PROVISIONS

1.    The following Counterparty Settlement Provisions shall apply to the extent indicated under the Master Confirmation:

Settlement Currency: USD

Settlement Method Election: Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof and replacing it with the words “Net Share” and (ii) the Electing Party may make a settlement method election only if the Electing Party represents and warrants to Seller in writing on the date it notifies Seller of its election that, as of such date, the Electing Party is not aware of any material non-public information concerning Counterparty or the Shares and is electing the settlement method in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.

Electing Party: Counterparty

Settlement Method

Election Date: The earlier of (i) the Scheduled Termination Date and (ii) the second Exchange Business Day immediately following the Accelerated Termination Date (in which case the election under Section 7.1 of the Equity Definitions shall be made no later than 10 minutes prior to the open of trading on the Exchange on such second Exchange Business Day), as the case may be.

Default Settlement Method: Cash Settlement

Forward Cash Settlement

Amount: The Number of Shares to be Delivered multiplied by the Settlement Price.

Settlement Price: The average of the VWAP Prices for the Exchange Business Days in the Settlement Valuation Period, subject to Valuation Disruption as specified in the Master Confirmation.

Settlement Valuation Period: A number of Scheduled Trading Days selected by Seller in its reasonable discretion, beginning on the Scheduled Trading Day immediately following the earlier of (i) the Scheduled Termination Date or (ii) the Exchange Business Day immediately following the Termination Date.

Cash Settlement: If Cash Settlement is applicable, then Buyer shall pay to Seller the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date.

Cash Settlement

Payment Date: The date one Settlement Cycle following the last day of the Settlement Valuation Period.

Net Share Settlement

Procedures: If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 7 below.

2.    Net Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such conditions (the “Unregistered Settlement Shares”), in either case with a value equal to the absolute value of the

Forward Cash Settlement Amount, with such Shares’ value based on the value thereof to Seller (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount), in each case as determined by the Calculation Agent.

3.    Counterparty may only deliver Registered Settlement Shares pursuant to paragraph 2 above if:

(a)    a registration statement covering public resale of the Registered Settlement Shares by Seller (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including any prospectus supplement thereto, the “Prospectus”) shall have been delivered to Seller, in such quantities as Seller shall reasonably have requested, on or prior to the date of delivery;

(b)    the form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan of distribution) shall be satisfactory to Seller;

(c)    as of or prior to the date of delivery, Seller and its agents shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities and the results of such investigation are satisfactory to Seller, in its discretion; and

(d)    as of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with Seller in connection with the public resale of the Registered Settlement Shares by Seller substantially similar to underwriting agreements customary for underwritten offerings of equity securities, in form and substance satisfactory to Seller, which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Seller and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.

4.    If Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above:

(a)    all Unregistered Settlement Shares shall be delivered to Seller (or any affiliate of Seller designated by Seller) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof;

(b)    as of or prior to the date of delivery, Seller and any potential purchaser of any such shares from Seller (or any affiliate of Seller designated by Seller) identified by Seller shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably requested by them);

(c)    as of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with Seller (or any affiliate of Seller designated by Seller) in connection with the private placement of such shares by Counterparty to Seller (or any such affiliate) and the private resale of such shares by Seller (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of equity securities, in form and substance commercially reasonably satisfactory to Seller, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation, to the indemnification of, and contribution in connection with the liability of, Seller and its affiliates and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for the payment by Counterparty of all fees and expenses of Seller (or an affiliate thereof) in connection with such resale, including all fees and expenses of counsel for Seller, and shall contain representations, warranties, covenants and agreements of Counterparty reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities Act for such resales; and

(d)    in connection with the private placement of such shares by Counterparty to Seller (or any such affiliate) and the private resale of such shares by Seller (or any such affiliate), Counterparty shall, if so requested by Seller, prepare, in cooperation with Seller, a private placement memorandum in form and substance reasonably satisfactory to Seller.

5.    Seller, itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together, the “Settlement Shares”) delivered by Counterparty to Seller pursuant to

paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined below) of such sales, as determined by Seller, is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”). If the proceeds of any sale(s) made by Seller, the Selling Agent or any underwriter(s), net of any fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, Seller will refund, in USD, such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion of the Settlement Shares remains unsold, Seller shall return to Counterparty on that date such unsold Shares.

6.    If the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of theForward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of theForward Cash Settlement Amount being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to Seller, through the Selling Agent, a notice of Counterparty’s election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares. If Counterparty elects to deliver to Seller additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Exchange Business Day equal to the Shortfall. Such Makewhole Shares shall be sold by Seller in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any Makewhole Shares is less than the absolute value of theForward Cash Settlement Amount then Counterparty shall, at its election, either make such cash payment or deliver to Seller further Makewhole Shares until such Shortfall has been reduced to zero.

7.    Notwithstanding the foregoing, in no event shall the aggregate number of Settlement Shares and Makewhole Shares be greater than the Reserved Shares minus the amount of any Shares actually delivered by Counterparty under any other Transaction(s) under this Master Confirmation (the result of such calculation, the “Capped Number”). Counterparty represents and warrants (which shall be deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares determined according to the following formula:

A - B

Where A = the number of authorized but unissued shares of Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and

B = the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than Transactions in the Shares under this Master Confirmation) with all third parties that are then currently outstanding and unexercised.

“Reserved Shares” means initially, 21,627,409 Shares. The Reserved Shares may be increased or decreased in a Supplemental Confirmation.

Deutsche Bank

Deutsche Bank Securities Inc.

60 Wall Street

New York, New York 10005

Tel 212 250 2500

Radian Group Inc.

1601 Market Street

Philadelphia, PA 19103

Dear Valued Client,

As you may know, FINRA and certain NYSE exchanges have adopted a substantially identical Rule 5320 (the “Rule”) to consolidate, update and simplify existing rules relating to customer priority, parity and precedence. We provide this letter to provide you with information regarding certain DBSI trading practices in relation to the Rule.

Subject to our best execution obligations and rules relating to customer priority, parity and precedence, your open orders may not receive priority over principal orders handled by DBSI, unless you instruct us in writing to the contrary. There are various instances in which your orders may be handled in this manner. For instance, where we have committed capital in connection with market making activities and we have taken on as principal the risk of such position, we may trade entirely or partially out of our risk at prices which could satisfy your orders. Or, we may engage in bona-fide hedging activities at prices that may satisfy your orders.

There may be other cases in which your orders may be handled in this manner. For instance, where we use trading algorithms to execute principal orders, the algorithm may execute these orders at prices which could satisfy your open orders, for reasons having nothing to do with whether the orders were principal orders or customer orders (e.g. time of order entry, specific algorithm strategy, order parameters such as urgency of execution, or any combination of these). Likewise, in instances in which you instruct us to use our discretion in executing your order (for example, your instruction to work the order over the course of the day or subject to other parameters), we may execute principal orders at prices that would satisfy your orders.

In the event that you object to the practices described in this letter, please email us at Rule.5320@db.com (with a period between “Rule” and “5320”) so that DBSI may act in accordance with such instruction. For the avoidance of doubt, if you so choose, you may instruct DBSI not to trade on a principal basis at prices that would satisfy your open orders being handled by the relevant trading unit. We may, however, take such an instruction into account when setting pricing terms for your transactions.

Finally, please note that DBSI has significant controls designed to prevent our trading units from obtaining knowledge of customer orders handled by other trading units. As such, subject to applicable rules, DBSI trading units other than the unit handling your order may trade on a principal basis at prices that would satisfy your order, even if you provide us with the instruction described in the preceding paragraph.

If you have any questions on the information in this letter, please do not hesitate to let us know. We seek to continue to earn your trust and business.

EX-12

Exhibit 12

Radian Group Inc.

Ratio of Earnings to Fixed Charges

	Six Months Ended		Fiscal Years Ended December 31,
(In thousands)	June 30, 2015		2014			2013			2012			2011			2010
Net earnings (loss) from continuing operations	$	136,920	$	1,259,574		$	(141,851	)	$	(224,105	)	$	(446,790	)	$	(1,418,111	)
Federal and state income tax provision (benefit)	80,514		(852,418		)	(31,495		)	(48,323		)	(138,238		)	481,899
Earnings (loss) before income taxes	217,434		407,156			(173,346		)	(272,428		)	(585,028		)	(936,212		)
Equity in net income of affiliates	—		—			—			—			—			(14,598		)
Distributed income from equity investees	—		—			—			—			—			29,498
Net earnings (loss)	217,434		407,156			(173,346		)	(272,428		)	(585,028		)	(921,312		)
Fixed charges:
Interest	48,886		90,464			74,618			51,832			61,394			41,777
One-Third of all rentals	762		1,308			1,020			1,269			1,060			966
Fixed charges	49,648		91,772			75,638			53,101			62,454			42,743
Preferred dividends	—		—			—			—			—			—
Fixed charges and preferred dividends	49,648		91,772			75,638			53,101			62,454			42,743
Net earnings (loss) and fixed charges	$	267,082	$	498,928		$	(97,708	)	$	(219,327	)	$	(522,574	)	$	(878,569	)
Net earnings (loss), fixed charges and preferred dividends	$	267,082	$	498,928		$	(97,708	)	$	(219,327	)	$	(522,574	)	$	(878,569	)
Ratio of net earnings (loss) and fixed charges to fixed charges	5.4x		5.4x			(1)			(1)			(1)			(1)
Ratio of net earnings (loss), fixed charges and preferred stock dividends to fixed charges and preferred stock dividends (2)	5.4x		5.4x			(1)			(1)			(1)			(1)

____________________

(1) For the fiscal years ended December 31, 2013, 2012, 2011 and 2010, earnings were not adequate to cover fixed charges in the amounts of $(97,708), $(219,327), $(522,574) and $(878,569), respectively.

(2) Interest on tax accruals that are non-third party indebtedness are excluded from the calculations.

EX-31

EXHIBIT 31

CERTIFICATIONS

I, Sanford A. Ibrahim, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Radian Group Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 7, 2015	/s/    SANFORD A. IBRAHIM
	Sanford A. Ibrahim Chief Executive Officer

I, J. Franklin Hall, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Radian Group Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 7, 2015	/s/    J. Franklin Hall
	J. Franklin Hall Executive Vice President, Chief Financial Officer

EX-32

EXHIBIT 32

Section 1350 Certifications

I, Sanford A. Ibrahim, Chief Executive Officer of Radian Group Inc., and I, J. Franklin Hall, Chief Financial Officer of Radian Group Inc., certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (the “Periodic Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of Radian Group Inc.

Date: August 7, 2015	/s/    S. A. IBRAHIM
	Sanford A. Ibrahim Chief Executive Officer
	/s/    J. Franklin Hall
	J. Franklin Hall Executive Vice President, Chief Financial Officer

XML

Note 14 - Selected Financial Information of Registrant (Tables)

6 Months Ended

Jun. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Selected Financial Information Of Registrant [Table Text Block]

(In thousands)	June 30, 2015		December 31, 2014
Investment in subsidiaries, at equity in net assets	$	3,018,264	$	2,746,915
Total assets	3,869,439		3,741,648
Long-term debt	1,224,892		1,192,299
Total liabilities	1,507,495		1,569,898
Equity component of currently redeemable convertible senior notes	8,546		74,690
Total stockholders’ equity	2,353,398		2,097,060
Total liabilities and stockholders’ equity	3,869,439		3,741,648

XML

Note 6 - Goodwill and Other Intangible Assets, Net Schedule of Future Amortization Expense for Finite Lived Assets (Details) - Jun. 30, 2015 - USD ($) $ in Thousands	Total
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 6,548
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	12,559
Finite-Lived Intangible Assets, Amortization Expense, Year Two	11,918
Finite-Lived Intangible Assets, Amortization Expense, Year Three	11,286
Finite-Lived Intangible Assets, Amortization Expense, Year Four	10,050
Finite-Lived Intangible Assets, Amortization Expense, Year Five	8,497
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	$ 35,462
Finite-Lived Intangible Assets, Remaining Amortization Period	15 years

XML

Note 5 - Investments Investments Trading Securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Schedule of Trading Securities and Other Trading Assets [Line Items]
Marketable Securities, Unrealized Gain (Loss)	$ 13,700	$ 65,700
Trading Securities	1,466,435	1,633,584
US government and agency securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	131,335	134,530
State and municipal obligations
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	312,340	343,926
Corporate bonds and notes
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	660,964	708,361
RMBS
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	80,772	89,810
CMBS
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	169,443	188,615
Other ABS
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	30,952	77,755
Foreign government securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	13,548	18,331
Equity securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Trading Securities	$ 67,081	$ 72,256

XML

Note 7 - Reinsurance Reinsurance Premiums Written and Earned (Details) - Entity [Domain] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Premiums Earned, Net [Abstract]
Net premiums earned-insurance	$ 237,437	$ 203,646	$ 462,032	$ 402,408
Mortgage Insurance Segment
Premiums Written, Net [Abstract]
Direct Premiums Written	258,198	238,590	513,446	467,859
Assumed Premiums Written	8	10	55	20
Ceded Premiums Written	(7,124)	(16,653)	(20,511)	(32,979)
Net premiums written	251,082	221,947	492,990	434,900
Premiums Earned, Net [Abstract]
Direct Premiums Earned	249,797	221,171	491,961	437,047
Assumed Premiums Earned	10	12	23	24
Ceded Premiums Earned	(12,370)	(17,537)	(29,952)	(34,663)
Net premiums earned-insurance	$ 237,437	$ 203,646	$ 462,032	$ 402,408

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Note 4 - Fair Value of Financial Instruments Other Fair Value Disclosure (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt		$ 1,224,892	$ 1,192,299
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other Invested Assets, Carrying Amount		13,600	14,600
Long-term debt		1,224,900	1,192,300
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other invested assets fair value disclosure	[1]	21,000	20,500
Long-term Debt, Fair Value	[1]	$ 1,681,000	$ 1,859,300

[1] These estimated fair values would be classified in Level II of the fair value hierarchy.

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Note 7 - Reinsurance (Tables)

6 Months Ended

Jun. 30, 2015

Reinsurance Disclosures [Abstract]

Reinsurance, Premiums Written And Earned [Table Text Block]

The effect of reinsurance on net premiums written and earned is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Net premiums written-insurance:
Direct	$	258,198		$	238,590		$	513,446		$	467,859
Assumed	8			10			55			20
Ceded	(7,124		)	(16,653		)	(20,511		)	(32,979		)
Net premiums written-insurance	$	251,082		$	221,947		$	492,990		$	434,900
Net premiums earned-insurance:
Direct	$	249,797		$	221,171		$	491,961		$	437,047
Assumed	10			12			23			24
Ceded	(12,370		)	(17,537		)	(29,952		)	(34,663		)
Net premiums earned-insurance	$	237,437		$	203,646		$	462,032		$	402,408

Reinsurance Transaction Details [Table Text Block]

The following tables show the amounts related to the QSR Transactions for the periods indicated:

	Initial QSR Transaction
	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Ceded premiums written	$	3,822	$	5,046	$	7,889	$	10,350
Ceded premiums earned	6,424		6,803		12,442		13,610
Ceding commissions written	828		1,262		1,708		2,588

	Second QSR Transaction
	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Ceded premiums written	$	395	$	8,072	$	6,924	$	15,365
Ceded premiums earned	3,039		7,197		11,807		13,782
Ceding commissions written	2,154		2,825		4,439		5,378

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Note 15 - Commitments and Contingencies Contingent Claims for Trade Credit and Surety Primary Insurers (Details) - Trade Credit Reinsurance and Surety Insurance [Member] € in Millions, $ in Millions	Jun. 30, 2015 servicers	Dec. 31, 2014 USD ($)	Dec. 31, 2014 EUR (€)
Financial Guaranty Segment
Loss Contingencies [Line Items]
Number of Servicers Who Have Submitted Claims	1
Radian Asset Assurance [Member] | Euro Member Countries, Euro
Loss Contingencies [Line Items]
Loss Contingency, Claims Received Through Reporting Period | €			€ 13.5
Radian Asset Assurance [Member] | United States of America, Dollars
Loss Contingencies [Line Items]
Loss Contingency, Claims Received Through Reporting Period | $		$ 16.4

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Note 8. Other Assets (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Deposit with the IRS (Note 12)		$ 88,557	$ 88,557
Corporate-owned life insurance		81,998	80,755
Prepaid reinsurance premiums		47,835	57,291
Property and equipment (1)	[1]	35,380	27,248
Accrued investment income		24,475	20,022
Reinsurance recoverables		13,227	28,119
Deferred policy acquisition costs		9,866	12,003
Other		48,033	43,869
Total other assets		349,371	357,864
Property and Equipment, Owned, Accumulated Depreciation		$ 103,300	$ 100,200

[1] Property and equipment, at cost less accumulated depreciation of $103.3 million and $100.2 million at June 30, 2015 and December 31, 2014, respectively.

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Note 15 - Commitments and Contingencies Guarantor Obligations (Details) - Jun. 30, 2015 - Guaranteed Structured Transactions [Member] $ in Millions	USD ($) transaction
Guaranteed Structure Transactions [Abstract]
Number of Guaranteed Structured Transactions For Radian Guaranty	2
Guarantor Obligations, Maximum Exposure, Undiscounted | $	$ 87.4

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Note 1 - Condensed Consolidated Financial Statements - Basis of Presentation and Business Overview (Policies)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Our condensed consolidated financial statements are prepared in accordance with GAAP and include the accounts of all wholly-owned subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated.

Use of Estimates, Policy [Policy Text Block]

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our condensed consolidated financial statements include our best estimates and assumptions, actual results may vary materially.

Debt, Policy [Policy Text Block]

We accounted for the June 2015 purchases of a portion of our outstanding convertible debt in exchange for cash and shares of Radian Group common stock as an induced conversion of convertible debt in accordance with the accounting standard regarding derecognition of debt with conversion and other options, and the accounting standard regarding debt modifications and extinguishments. The accounting standards require the recognition through earnings of an inducement charge equal to the fair value of the consideration delivered in excess of the consideration issuable under the original conversion terms. The remaining consideration delivered and transaction costs incurred are required to be allocated between the extinguishment of the liability component and the reacquisition of the equity component. Therefore, we recognized as a loss on induced conversion and debt extinguishment the sum of: (i) the inducement charge; (ii) the difference between the fair value and the carrying value of the liability component of the purchased debt; (iii) transaction costs allocated to the debt component; and (iv) unamortized debt issuance costs related to the purchased debt.

Stockholders' Equity, Policy [Policy Text Block]

Our ASR program consists of the combination of the purchase of Radian Group common stock from an investment bank and a forward contract with that investment bank indexed to Radian Group common stock. We account for the ASR program in accordance with the provisions of the accounting standards regarding derivatives and hedging for contracts indexed to an entity’s own stock, and the accounting standard regarding equity. The up-front payment to the investment bank as part of the ASR program is accounted for as a reduction to stockholders’ equity in our consolidated balance sheets in the period the payment was made. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares in the periods delivered. We reflect the ASR program as a repurchase of common stock in the periods delivered for purposes of calculating earnings per share and as forward contracts indexed to the company’s own common stock. The ASR program met all of the applicable criteria for equity classification, and therefore, was not accounted for as a derivative instrument.

Accounting Standards Update 2014-09 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

In May 2014, the FASB issued an update to the accounting standard regarding revenue recognition. This update is intended to provide a consistent approach in recognizing revenue. In accordance with the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. While this update is not expected to change revenue recognition principles related to our insurance products, this update may be applicable to revenues from our Services segment, which has been included in our condensed consolidated statements of operations beginning with the third quarter of 2014.

Accounting Standards Update 2015-03 [Member] [Domain]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

New Accounting Pronouncements, Policy [Policy Text Block]

In April 2015, the FASB issued an update to the accounting standard for the presentation of debt issuance costs in financial statements. The new standard requires an entity to present debt issuance costs related to a recognized debt liability as a direct reduction from the carrying amount of the related debt liability, consistent with debt discounts, rather than as a separate asset as currently required. The recognition and measurement guidance for debt issuance costs are not affected by the update. The provisions of this update are effective for interim and annual periods beginning after December 15, 2015, and must be applied on a retrospective basis for all periods presented. We early adopted this update effective June 30, 2015, as permitted for financial statements that have not been previously issued.

Accounting Standards Update 2015-05 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

In April 2015, the FASB issued an update to the accounting standard for the accounting of internal-use software. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The provisions of this update are effective for interim and annual periods beginning after December 15, 2015, and early adoption is permitted.

Accounting Standards Update 2015-09 [Member]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

In May 2015, the FASB issued an update to the accounting standard for the accounting of short-duration insurance contracts by insurance entities. The amendments in this update require insurance entities to disclose certain information about the liability for unpaid claims and claim adjustment expenses. The additional information required is focused on improvements in disclosures regarding insurance liabilities, including the timing, nature and uncertainty of future cash flows related to insurance liabilities and the effect of those cash flows on the statement of comprehensive income. The disclosures required by this update are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016; early adoption is permitted.

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Note 5 - Investments Schedule of Unrealized Losses (Details) $ in Thousands	Jun. 30, 2015 USD ($) security	Dec. 31, 2014 USD ($) security
Continuous Loss Position Less Than Twelve Months
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security	174	62
Fair value available-for-sale securities	$ 851,504	$ 144,626
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 20,898	$ 2,379
Continuous Unrealized Loss Position, Twelve Months Or Greater
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security	18	2
Fair value available-for-sale securities	$ 50,215	$ 4,482
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 894	$ 154
Continuous Loss Position, Total
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security	192	64
Fair value available-for-sale securities	$ 901,719	$ 149,108
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 21,792	$ 2,533
US government and agency securities
Continuous Loss Position Less Than Twelve Months
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security		0
Fair value available-for-sale securities		$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss		$ 0
Continuous Unrealized Loss Position, Twelve Months Or Greater
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security		1
Fair value available-for-sale securities		$ 3,455
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		$ 6
Continuous Loss Position, Total
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security		1
Fair value available-for-sale securities		$ 3,455
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss		$ 6
State and municipal obligations
Continuous Loss Position Less Than Twelve Months
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security	1
Fair value available-for-sale securities	$ 5,727
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 2
Continuous Unrealized Loss Position, Twelve Months Or Greater
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security	0
Fair value available-for-sale securities	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0
Continuous Loss Position, Total
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security	1
Fair value available-for-sale securities	$ 5,727
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 2
Corporate bonds and notes
Continuous Loss Position Less Than Twelve Months
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security	95	24
Fair value available-for-sale securities	$ 408,203	$ 40,917
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 13,528	$ 410
Continuous Unrealized Loss Position, Twelve Months Or Greater
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security	7	1
Fair value available-for-sale securities	$ 10,172	$ 1,027
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 407	$ 148
Continuous Loss Position, Total
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security	102	25
Fair value available-for-sale securities	$ 418,375	$ 41,944
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 13,935	$ 558
RMBS
Continuous Loss Position Less Than Twelve Months
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security	9
Fair value available-for-sale securities	$ 116,631
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 2,115
Continuous Unrealized Loss Position, Twelve Months Or Greater
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security	0
Fair value available-for-sale securities	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0
Continuous Loss Position, Total
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security	9
Fair value available-for-sale securities	$ 116,631
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 2,115
CMBS
Continuous Loss Position Less Than Twelve Months
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security	30
Fair value available-for-sale securities	$ 195,913
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 4,640
Continuous Unrealized Loss Position, Twelve Months Or Greater
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security	0
Fair value available-for-sale securities	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 0
Continuous Loss Position, Total
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security	30
Fair value available-for-sale securities	$ 195,913
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 4,640
Other ABS
Continuous Loss Position Less Than Twelve Months
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security	28	34
Fair value available-for-sale securities	$ 114,059	$ 97,356
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 273	$ 1,727
Continuous Unrealized Loss Position, Twelve Months Or Greater
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security	10	0
Fair value available-for-sale securities	$ 39,860	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 471	$ 0
Continuous Loss Position, Total
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security	38	34
Fair value available-for-sale securities	$ 153,919	$ 97,356
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 744	$ 1,727
Foreign government securities
Continuous Loss Position Less Than Twelve Months
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | security	11	4
Fair value available-for-sale securities	$ 10,971	$ 6,353
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 340	$ 242
Continuous Unrealized Loss Position, Twelve Months Or Greater
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security	1	0
Fair value available-for-sale securities	$ 183	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$ 16	$ 0
Continuous Loss Position, Total
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security	12	4
Fair value available-for-sale securities	$ 11,154	$ 6,353
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 356	$ 242

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Note 2 - Discontinued Operations (Details) - Entity [Domain] - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 01, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net investment income		$ 19,285	$ 16,663	$ 36,613	$ 31,981
Net gains on investments and other financial instruments		28,448	25,332	45,227	68,300
Other income		1,743	1,739	3,074	2,865
Revenues		330,416	247,380	621,079	505,554
Policy acquisition costs		6,963	6,746	14,713	13,763
Other operating expenses		67,731	60,751	121,505	115,258
Costs and Expenses		250,432	154,493	403,645	285,570
Income from discontinued operations, net of tax		4,855	71,296	5,385	128,075
Available-for-sale Securities, Debt Securities		1,178,842		1,178,842		$ 536,890
Available-for-sale Securities, Equity Securities		881		881		143,368
Trading securities—at fair value		1,466,435		1,466,435		1,633,584
Short-term investments—at fair value		1,649,370		1,649,370		1,300,872
Other invested assets		13,620		13,620		14,585
Other assets		349,371		349,371		357,864
Total assets held for sale		0		0		1,736,444	[1]
Unearned premiums		665,947		665,947		644,504
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)		1,204,792		1,204,792		1,560,032
Other liabilities		278,929		278,929		326,743
Total liabilities held for sale		0		0		947,008
Radian Asset Assurance [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale of Stock, Percentage of Ownership before Transaction	100.00%
Disposal Group, Including Discontinued Operation, Consideration	$ 810,000
Equity Method Investment, Net Sales Proceeds	$ 789,000
Discontinued Operation, Provision for Loss (Gain) on Disposal, before Income Tax		(350)	0	(14,280)	0	(468,000)
Premiums Earned, Net, Financial Guarantee Insurance Contracts		0	10,468	1,007	17,371
Net investment income		0	9,074	9,153	17,985
Net gains on investments and other financial instruments		7,818	19,978	21,486	42,159
Change in fair value of derivative instruments		0	57,477	2,625	107,563
Other income		0	78	0	79
Revenues		7,818	97,075	34,271	185,157
Provision for losses		0	5,078	502	10,727
Policy acquisition costs		0	1,675	(191)	3,272
Other operating expenses		0	4,800	4,107	10,202
Costs and Expenses		0	11,553	4,418	24,201
Equity in net (loss) income of affiliates		0	0	(13)	(13)
Income from operations of businesses held for sale		7,818	85,522	29,840	160,943
Income tax provision on classification as held for sale		2,613	14,226	10,175	32,868
Income from discontinued operations, net of tax		$ 4,855	$ 71,296	$ 5,385	$ 128,075
Available-for-sale Securities, Debt Securities						224,552
Available-for-sale Securities, Equity Securities						3,749
Trading securities—at fair value						689,887
Short-term investments—at fair value						435,413
Other invested assets						108,206
Other assets						274,637
Total assets held for sale						1,736,444
Unearned premiums						158,921
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)						31,558
VIE debt						85,016
Derivative liabilities						183,370
Other liabilities						488,143
Total liabilities held for sale						$ 947,008

[1] Assets held for sale are not part of the Mortgage Insurance or Services segments.

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Note 17 - Net Income Per Share Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Income (Loss) from Continuing Operations Attributable to Parent		$ 45,193	$ 103,537	$ 136,920	$ 249,517
Income (Loss) From Continuing Operations, Diluted, Amount		48,900	109,040	144,300	260,475
Income from discontinued operations, net of tax		4,855	71,296	5,385	128,075
Net Income (Loss) Available to Common Stockholders, Basic		50,048	174,833	142,305	377,592
Net Income (Loss) Available to Common Stockholders, Diluted		$ 53,755	$ 180,336	$ 149,685	$ 388,550
Weighted-average number of common shares outstanding—basic		193,112	182,583	192,245	177,903
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	[1]	3,364	2,861	3,211	2,822
Weighted-average number of common and common equivalent shares outstanding—diluted		246,650	230,779	244,981	226,767
Net income from continuing operations		$ 0.23	$ 0.57	$ 0.71	$ 1.40
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share		0.03	0.39	0.03	0.72
Earnings Per Share, Basic		0.26	0.96	0.74	2.12
Income (Loss) from Continuing Operations, Per Diluted Share		0.20	0.47	0.59	1.15
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share		0.02	0.31	0.02	0.56
Earnings Per Share, Diluted		$ 0.22	$ 0.78	$ 0.61	$ 1.71
Convertible Debt [Member] | Convertible Senior Notes Due 2019
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Interest on Convertible Debt, Net of Tax	[2]	$ 3,707	$ 5,503	$ 7,380	$ 10,958
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities		37,736	37,736	37,736	37,736
Convertible Debt [Member] | Convertible Senior Notes Due 2017
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities		12,438	7,599	11,789	8,306
Stock Compensation Plan [Member]
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		264	1,484	530	1,484

[1] The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of net income per share because they were anti-dilutive: Three Months EndedJune 30, Six Months EndedJune 30,(in thousands)2015 2014 2015 2014Shares of common stock equivalents264 1,484 530 1,484

[2] As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion.

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Note 11 - Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The following table shows the rollforward of AOCI as of the periods indicated. During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $68.7 million.

	Three Months Ended June 30, 2015										Six Months Ended June 30, 2015
(In thousands)	Before Tax			Tax Effect			Net of Tax				Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	91,806		$	32,132		$	59,674			$	79,208		$	27,723		$	51,485
OCI:
Net foreign currency translation adjustments	243			85			158				49			17			32
Unrealized gains (losses) on investments:
Unrealized holding losses arising during the period	(33,261		)	(11,641		)	(21,620		)		(23,332		)	(8,166		)	(15,166		)
Less: Reclassification adjustment for net gains included in net income (1)	68,714			24,050			44,664				68,663			24,032			44,631
Net unrealized losses on investments	(101,975		)	(35,691		)	(66,284		)		(91,995		)	(32,198		)	(59,797		)
Activity related to investments recorded as assets held for sale (2)	(7,818		)	(2,736		)	(5,082		)	(3)	(5,006		)	(1,752		)	(3,254		)
OCI	(109,550		)	(38,342		)	(71,208		)		(96,952		)	(33,933		)	(63,019		)
Balance at end of period	$	(17,744	)	$	(6,210	)	$	(11,534	)		$	(17,744	)	$	(6,210	)	$	(11,534	)
	Three Months Ended June 30, 2014										Six Months Ended June 30, 2014
(In thousands)	Before Tax			Tax Effect			Net of Tax				Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	61,185		$	19,841		$	41,344			$	57,345		$	19,962		$	37,383
OCI:
Unrealized gains (losses) on investments:
Unrealized holding gains (losses) arising during the period	8,422			(211		)	8,633				11,092			(210		)	11,302
Less: Reclassification adjustment for net losses included in net income (1)	(604		)	(211		)	(393		)		(599		)	(210		)	(389		)
Net unrealized gains on investments	9,026			—			9,026				11,691			—			11,691
Activity related to investments recorded as assets held for sale (2)	646			(1		)	647				1,821			(122		)	1,943
OCI	9,672			(1		)	9,673				13,512			(122		)	13,634
Balance at end of period	$	70,857		$	19,840		$	51,017			$	70,857		$	19,840		$	51,017

_________________________

(1) Included in net gains on investments and other financial instruments on our condensed consolidated statements of operations.

(2) Represents the unrealized holding gains (losses) arising during the period on investments recorded as assets held for sale, net of reclassification adjustments for net gains (losses) included in net income from discontinued operations.

(3) For the three months ended June 30, 2015, this amount represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in AOCI.

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Note 6 - Goodwill and Other Intangible Assets, Net Schedule of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Mortgage and Real Estate Services Segment [Member]
Goodwill [Line Items]
Goodwill, Gross	$ 196,415	$ 194,027	$ 2,095
Goodwill, Acquired During Period	2,388	191,932
Goodwill, Impairment Loss	0	(2,095)
Goodwill, Impaired, Accumulated Impairment Loss	(2,095)	(2,095)	0
Goodwill, Net	194,320	$ 191,932	$ 2,095
Clayton Holdings, LLC [Member] | Series of Individually Immaterial Business Acquisitions [Member]
Goodwill [Line Items]
Goodwill, Acquired During Period	$ 2,388

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Note 13 - Statutory Information Statutory Information (Details) $ in Billions	Jun. 30, 2015 USD ($)
Statutory Accounting Practices [Line Items]
Restricted Net Assets Held by Consolidated Subsidiaries	$ 2.6

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Note 10 - Long-Term Debt Schedule of Long Term Debt (Details) - USD ($) $ in Thousands, shares in Millions		1 Months Ended	3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt		$ 1,224,892	$ 1,224,892		$ 1,224,892		$ 1,192,299
Loss on Repurchase of Debt Instrument			$ 91,876	$ 0	$ 91,876	$ 0
Senior Notes Due 2017
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		9.00%	9.00%		9.00%
Long-term debt		$ 191,256	$ 191,256		$ 191,256		190,245
Convertible Senior Notes Due 2017
Debt Instrument [Line Items]
Debt Issuance Cost	[1]	$ (451)	$ (451)		$ (451)		(3,974)
Debt Instrument, Interest Rate, Stated Percentage		3.00%	3.00%		3.00%
Long-term debt		$ 51,917	$ 51,917		$ 51,917		371,336
Long-term debt, Gross		60,914	60,914		60,914		450,000
Extinguishment of Debt, Amount			389,100
Payments of Debt Extinguishment Costs			$ 126,800
Debt Conversion, Converted Instrument, Shares Issued			28.4
Loss on Repurchase of Debt Instrument			$ 91,876
Induced Conversion of Convertible Debt Expense			35,500
Losses on Extinguishment of Debt			52,300
Write off of Deferred Debt Issuance Cost			4,100
Convertible Debt, Termination of Capped Call Transaction, Total Consideration			$ 54,900
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received			2.3
Convertible Debt, Termination of Capped Call Transaction, Total Cash Received			$ 12,000
Convertible Senior Notes Due 2019
Debt Instrument [Line Items]
Debt Issuance Cost	[1]	$ (5,219)	$ (5,219)		$ (5,219)		(5,878)
Debt Instrument, Interest Rate, Stated Percentage		2.25%	2.25%		2.25%
Long-term debt		$ 342,980	$ 342,980		$ 342,980		336,133
Long-term debt, Gross		$ 399,992	$ 399,992		$ 399,992		400,000
Senior Notes Due 2019 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		5.50%	5.50%		5.50%
Long-term debt		$ 295,198	$ 295,198		$ 295,198		294,585
Senior Notes Due 2020 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		5.25%	5.25%		5.25%
Long-term debt		$ 343,541	$ 343,541		$ 343,541		0
Long-term debt, Gross		350,000	$ 350,000		$ 350,000
Proceeds from Issuance of Long-term Debt		$ 344,300
Debt Instrument, Redemption Price, Percentage		100.00%
Debt Instrument, Basis Spread on Variable Rate		0.50%
Percent of Stock With Ordinary Voting Rights That Company Must Retain In Order To Make Any Capital Stock Transactions Under Debt Covenant Agreement		80.00%	80.00%		80.00%
Total Long Term Debt [Member]
Debt Instrument [Line Items]
Long-term debt		$ 1,224,892	$ 1,224,892		$ 1,224,892
New Accounting Pronouncement, Early Adoption, Effect [Member]
Debt Instrument [Line Items]
Debt Issuance Cost							(17,627)
New Accounting Pronouncement, Early Adoption, Effect [Member] | Senior Notes Due 2017
Debt Instrument [Line Items]
Debt Issuance Cost							(2,360)
New Accounting Pronouncement, Early Adoption, Effect [Member] | Convertible Senior Notes Due 2017
Debt Instrument [Line Items]
Debt Issuance Cost							(3,974)
New Accounting Pronouncement, Early Adoption, Effect [Member] | Convertible Senior Notes Due 2019
Debt Instrument [Line Items]
Debt Issuance Cost							(5,878)
New Accounting Pronouncement, Early Adoption, Effect [Member] | Senior Notes Due 2019 [Member]
Debt Instrument [Line Items]
Debt Issuance Cost							(5,415)
Scenario, Previously Reported [Member]
Debt Instrument [Line Items]
Long-term debt							1,209,926
Scenario, Previously Reported [Member] | Senior Notes Due 2017
Debt Instrument [Line Items]
Long-term debt							192,605
Scenario, Previously Reported [Member] | Convertible Senior Notes Due 2017
Debt Instrument [Line Items]
Long-term debt							375,310
Scenario, Previously Reported [Member] | Convertible Senior Notes Due 2019
Debt Instrument [Line Items]
Long-term debt							342,011
Scenario, Previously Reported [Member] | Senior Notes Due 2019 [Member]
Debt Instrument [Line Items]
Long-term debt							$ 300,000

[1] Included within long-term debt and is being amortized over the life of the convertible notes.

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Note 5 - Investments Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	$ 1,196,446	$ 528,660
Available-for-sale Securities	1,179,723	680,258
Available-for-sale Equity Securities, Amortized Cost Basis	573	76,900
Available-for-sale Securities, Equity Securities	881	143,368
Amortized Cost Debt and Equity Securities	1,197,019	605,560
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax	4,496	77,231
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax	21,792	2,533
US government and agency securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	5,745	5,709
Available-for-sale Securities	5,784	5,751
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	39	48
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	0	6
US States and Political Subdivisions Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	17,668	17,727
Available-for-sale Securities	18,476	18,910
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	810	1,183
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	2	0
Corporate bonds and notes
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	529,942	277,678
Available-for-sale Securities	517,857	284,408
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	1,850	7,288
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	13,935	558
RMBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	158,134	41,467
Available-for-sale Securities	156,532	42,520
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	513	1,053
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	2,115	0
CMBS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	218,531	57,358
Available-for-sale Securities	213,988	58,234
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	97	876
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	4,640	0
Other ABS
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	243,096	109,420
Available-for-sale Securities	243,045	107,701
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	693	8
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	744	1,727
Foreign government securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	23,330	19,301
Available-for-sale Securities	23,160	19,366
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	186	307
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	356	242
Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Debt Securities, Amortized Cost Basis	1,196,446	528,660
Available-for-sale Securities	1,178,842	536,890
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax	4,188	10,763
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax	21,792	2,533
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Equity Securities, Amortized Cost Basis	573	76,900	[1]
Available-for-sale Securities, Equity Securities	881	143,368	[1]
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax	308	66,468	[1]
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax	$ 0	0	[1]
Private Equity Funds, Domestic [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Equity Securities		143,000
Preferred and Common Stock [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Equity Securities		$ 400

[1] Comprising broadly diversified domestic equity mutual funds ($143.0 million fair value) and a preferred stock investment in Freddie Mac ($0.4 million fair value).

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Note 2 - Discontinued Operations (Notes)

6 Months Ended

Jun. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

On April 1, 2015, Radian Guaranty completed the sale of 100% of the issued and outstanding shares of Radian Asset Assurance for a purchase price of approximately $810 million, pursuant to the Radian Asset Assurance Stock Purchase Agreement. The divestiture was intended to better position Radian Guaranty to comply with the PMIERs and to support Radian’s strategic focus on the mortgage and real estate industries. After closing costs and other adjustments, Radian Guaranty received net proceeds of $789 million. See Note 1 for additional information regarding the PMIERs.

Previously, Radian Asset Assurance comprised substantially all of the financial guaranty segment. Radian Asset Assurance provided direct insurance and reinsurance on credit-based risks. As a result, the assets and liabilities associated with the discontinued operations historically were a source of significant volatility to Radian’s results of operations, due to various factors including fluctuations in fair value and credit risk.

Based upon the applicable terms of the Radian Asset Assurance Stock Purchase Agreement, we determined that Radian Asset Assurance met the criteria for held for sale and discontinued operations accounting at December 31, 2014. As a result, we recognized a pretax impairment charge of approximately $468 million for the year ended December 31, 2014 and an additional charge of $14.3 million for the six months ended June 30, 2015. The operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. We recorded net income from discontinued operations of $5.4 million related to this sale in the first six months of 2015, consisting primarily of the recognition of investment gains previously deferred and recorded in accumulated other comprehensive income and recognized as a result of the completion of the sale of Radian Asset Assurance to Assured on April 1, 2015, and adjustments to estimated transaction costs and taxes. No general corporate overhead or interest expense was allocated to discontinued operations.

In the tables below we have summarized the major components of the net income from discontinued operations, as well as the assets and liabilities held for sale.

The income from discontinued operations, net of tax, consisted of the following components for the periods indicated:

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015			2014		2015			2014
Net premiums earned	$	—		$	10,468	$	1,007		$	17,371
Net investment income	—			9,074		9,153			17,985
Net gains on investments and other financial instruments	7,818			19,978		21,486			42,159
Change in fair value of derivative instruments	—			57,477		2,625			107,563
Other income	—			78		—			79
Total revenues	7,818			97,075		34,271			185,157
Provision for losses	—			5,078		502			10,727
Policy acquisition costs	—			1,675		(191		)	3,272
Other operating expense	—			4,800		4,107			10,202
Total expenses	—			11,553		4,418			24,201
Equity in net loss of affiliates	—			—		(13		)	(13		)
Income from operations of businesses held for sale	7,818			85,522		29,840			160,943
Loss on sale	(350		)	—		(14,280		)	—
Income tax provision	2,613			14,226		10,175			32,868
Income from discontinued operations, net of tax	$	4,855		$	71,296	$	5,385		$	128,075

The assets and liabilities associated with the discontinued operations have been segregated in the condensed consolidated balance sheets for periods prior to the sale. The following table summarizes the major components of Radian Asset Assurance’s assets and liabilities held for sale on the condensed consolidated balance sheets as of the date indicated:

(In thousands)	December 31, 2014
Fixed-maturity investments	$	224,552
Equity securities	3,749
Trading securities	689,887
Short-term investments	435,413
Other invested assets	108,206
Other assets	274,637
Total assets held for sale	$	1,736,444
Unearned premiums	$	158,921
Reserve for losses and LAE	31,558
VIE debt	85,016
Derivative liabilities	183,370
Other liabilities	488,143
Total liabilities held for sale	$	947,008

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Note 10 - Long-Term Debt Schedule of Liability and Equity Components of Convertible Debt (Details) - Type of Adoption [Domain] - USD ($) $ in Thousands		Jun. 30, 2015	Dec. 31, 2014
Schedule of Liability and Equity Components of Convertible Debt [Line Items]
Long-term debt, net		$ 1,224,892	$ 1,192,299
Equity component of currently redeemable convertible senior notes		8,546	74,690
Convertible Senior Notes Due 2017
Schedule of Liability and Equity Components of Convertible Debt [Line Items]
Principal amount of convertible debt in liabilities		60,914	450,000
Less: Debt discount, net (1)	[1]	(8,546)	(74,690)
Less: Debt issuance costs (1)	[1]	(451)	(3,974)
Long-term debt, net		51,917	371,336
Equity component of currently redeemable convertible senior notes		8,546	74,690
Convertible Senior Notes Due 2019
Schedule of Liability and Equity Components of Convertible Debt [Line Items]
Principal amount of convertible debt in liabilities		399,992	400,000
Less: Debt discount, net (1)	[1]	(51,793)	(57,989)
Less: Debt issuance costs (1)	[1]	(5,219)	(5,878)
Long-term debt, net		342,980	336,133
Equity component of currently redeemable convertible senior notes		$ 0	$ 0

[1] Included within long-term debt and is being amortized over the life of the convertible notes.

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Note 3 - Segment Reporting Schedule of Segment Reporting Information by Segment (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) segment	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment				2
Net premiums earned-insurance		$ 237,437	$ 203,646	$ 462,032	$ 402,408
Services revenue		43,503	0	74,133	0
Net investment income		19,285	16,663	36,613	31,981
Other income		1,743	1,739	3,074	2,865
Provision for losses		32,560	64,648	77,588	114,274
Policy acquisition costs		6,963	6,746	14,713	13,763
Direct cost of services		23,520	0	42,773	0
Other operating expenses before corporate allocations		67,731	60,751	121,505	115,258
Assets held for sale (1)		0		0		$ 1,736,444	[1]
Total assets		5,736,504		5,736,504		6,842,336
Mortgage Insurance Segment
Segment Reporting Information [Line Items]
Net premiums written—insurance		251,082	221,947	492,990	434,900
Increase in unearned premiums		(13,645)	(18,301)	(30,958)	(32,492)
Net premiums earned-insurance		237,437	203,646	462,032	402,408
Net investment income	[2]	19,285	16,663	36,613	31,981
Other income	[2]	1,743	1,620	3,074	2,616
Revenue Non GAAP Basis		258,465	221,929	501,719	437,005
Provision for losses		31,637	64,648	77,488	114,274
Change In Present Value of Estimated Credit Loss Payments		0	180	0	319
Policy acquisition costs		6,963	6,746	14,713	13,763
Other operating expenses before corporate allocations		41,853	36,356	75,903	74,120
Total Expenses Non-GAAP	[3]	80,453	107,930	168,104	202,476
Adjusted pretax operating income before corporate allocations		178,012	113,999	333,615	234,529
Allocation of corporate operating expenses	[2]	12,516	17,021	22,274	32,905
Allocation of interest expense (1)	[2]	20,070	22,348	40,023	42,275
Adjusted pretax operating income (loss)	[4],[5]	145,426	74,630	271,318	159,349
Total assets		5,384,224		5,384,224		4,769,014
Costs and Expenses, Related Party		1,092	0	1,994	0
Mortgage and Real Estate Services Segment [Member]
Segment Reporting Information [Line Items]
Services revenue		44,595	0	76,127	0
Other income		0	119	0	249
Revenue Non GAAP Basis	[6]	44,595	119	76,127	249
Direct cost of services		25,501	0	44,754	0
Other operating expenses before corporate allocations		11,522	642	20,379	1,501
Total Expenses Non-GAAP		37,023	642	65,133	1,501
Adjusted pretax operating income before corporate allocations		7,572	(523)	10,994	(1,252)
Allocation of corporate operating expenses		1,307	0	2,288	0
Allocation of interest expense (1)		4,431	0	8,863	0
Adjusted pretax operating income (loss)	[5]	1,834	(523)	(157)	(1,252)
Total assets		352,280		352,280		$ 336,878
Revenue from Related Parties		1,092	0	1,994	0
Mortgage Insurance and Mortgage and Real Estate Services Segments [Member]
Segment Reporting Information [Line Items]
Adjusted pretax operating income (loss)		147,260	74,107	271,161	158,097
Interest Expense [Member] | Continuing Operations [Member] | Mortgage Insurance Segment
Segment Reporting Information [Line Items]
Segment Reporting, Previously Allocated Income (Expense) to Discontinued Operations		0	15,943	9,918	30,498
Investment Income [Member] | Continuing Operations [Member] | Mortgage Insurance Segment
Segment Reporting Information [Line Items]
Segment Reporting, Previously Allocated Income (Expense) to Discontinued Operations		0	1,392	882	2,689
Other Income [Member] | Continuing Operations [Member] | Mortgage Insurance Segment
Segment Reporting Information [Line Items]
Segment Reporting, Previously Allocated Income (Expense) to Discontinued Operations		0	113	26	182
Other Operating Income (Expense) [Member] | Continuing Operations [Member] | Mortgage Insurance Segment
Segment Reporting Information [Line Items]
Segment Reporting, Previously Allocated Income (Expense) to Discontinued Operations		$ 0	$ 4,412	$ 2,074	$ 8,561

[1] Assets held for sale are not part of the Mortgage Insurance or Services segments.

[2] For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations, as follows: Three Months EndedJune 30, Six Months EndedJune 30,(In thousands)2015 2014 2015 2014Net investment income$— $1,392 $882 $2,689Other income— 113 26 182Allocation of corporate operating expenses— 4,412 2,074 8,561Allocation of interest expense— 15,943 9,918 30,498

[3] Includes inter-segment expenses as follows: Three Months EndedJune 30, Six Months EndedJune 30,(In thousands)2015 2014 2015 2014Inter-segment expenses$1,092 $— $1,994 $—

[4] For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment, as listed in the preceding tables. These amounts represent items that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations.

[5] Includes inter-segment expenses and revenues as listed in the notes to the preceding tables.

[6] Includes inter-segment revenues as follows: Three Months EndedJune 30, Six Months EndedJune 30,(In thousands)2015 2014 2015 2014Inter-segment revenues$1,092 $— $1,994 $—

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Note 3 - Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Summarized operating results for our segments as of and for the periods indicated, are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Mortgage Insurance
Net premiums written—insurance	$	251,082		$	221,947		$	492,990		$	434,900
Increase in unearned premiums	(13,645		)	(18,301		)	(30,958		)	(32,492		)
Net premiums earned—insurance	237,437			203,646			462,032			402,408
Net investment income (1)	19,285			16,663			36,613			31,981
Other income (1)	1,743			1,620			3,074			2,616
Total	258,465			221,929			501,719			437,005
Provision for losses	31,637			64,648			77,488			114,274
Change in expected economic loss or recovery for consolidated VIEs	—			180			—			319
Policy acquisition costs	6,963			6,746			14,713			13,763
Other operating expenses before corporate allocations	41,853			36,356			75,903			74,120
Total (2)	80,453			107,930			168,104			202,476
Adjusted pretax operating income before corporate allocations	178,012			113,999			333,615			234,529
Allocation of corporate operating expenses (1)	12,516			17,021			22,274			32,905
Allocation of interest expense (1)	20,070			22,348			40,023			42,275
Adjusted pretax operating income	$	145,426		$	74,630		$	271,318		$	159,349

____________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations, as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Net investment income	$	—	$	1,392	$	882	$	2,689
Other income	—		113		26		182
Allocation of corporate operating expenses	—		4,412		2,074		8,561
Allocation of interest expense	—		15,943		9,918		30,498

(2) Includes inter-segment expenses as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Inter-segment expenses	$	1,092	$	—	$	1,994	$	—

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015		2014			2015			2014
Services
Services revenue	$	44,595	$	—		$	76,127		$	—
Other income	—		119			—			249
Total (1)	44,595		119			76,127			249
Direct cost of services	25,501		—			44,754			—
Other operating expenses before corporate allocations	11,522		642			20,379			1,501
Total	37,023		642			65,133			1,501
Adjusted pretax operating income (loss) before corporate allocations	7,572		(523		)	10,994			(1,252		)
Allocation of corporate operating expenses	1,307		—			2,288			—
Allocation of interest expense	4,431		—			8,863			—
Adjusted pretax operating income (loss)	$	1,834	$	(523	)	$	(157	)	$	(1,252	)

____________

(1) Includes inter-segment revenues as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Inter-segment revenues	$	1,092	$	—	$	1,994	$	—

Selected balance sheet information for our segments as of the periods indicated, is as follows:

	At June 30, 2015
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,384,224	$	352,280	$	5,736,504

	At December 31, 2014
(In thousands)	Mortgage Insurance		Services		Total
Assets held for sale (1)	$	—	$	—	$	1,736,444
Total assets	4,769,014		336,878		6,842,336

________________

(1) Assets held for sale are not part of the Mortgage Insurance or Services segments.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

The reconciliation of adjusted pretax operating income to consolidated pretax income from continuing operations is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Adjusted pretax operating income (loss):
Mortgage Insurance (1) (2)	$	145,426		$	74,630		$	271,318		$	159,349
Services (2)	1,834			(523		)	(157		)	(1,252		)
Total adjusted pretax operating income	147,260			74,107			271,161			158,097
Net gains on investments and other financial instruments (3)	28,448			25,512			45,227			68,619
Loss on induced conversion and debt extinguishment	(91,876		)	—			(91,876		)	—
Acquisition-related expenses	(567		)	(6,732		)	(774		)	(6,732		)
Amortization and impairment of intangible assets	(3,281		)	—			(6,304		)	—
Consolidated pretax income from continuing operations	$	79,984		$	92,887		$	217,434		$	219,984

______________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment, as listed in the preceding tables. These amounts represent items that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations.

(2) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables.

(3) The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains on investments and other financial instruments has been adjusted by $0.2 million and $0.3 million for the three and six months ended June 30, 2014, respectively, to reverse this item.

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Note 2 - Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

The income from discontinued operations, net of tax, consisted of the following components for the periods indicated:

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015			2014		2015			2014
Net premiums earned	$	—		$	10,468	$	1,007		$	17,371
Net investment income	—			9,074		9,153			17,985
Net gains on investments and other financial instruments	7,818			19,978		21,486			42,159
Change in fair value of derivative instruments	—			57,477		2,625			107,563
Other income	—			78		—			79
Total revenues	7,818			97,075		34,271			185,157
Provision for losses	—			5,078		502			10,727
Policy acquisition costs	—			1,675		(191		)	3,272
Other operating expense	—			4,800		4,107			10,202
Total expenses	—			11,553		4,418			24,201
Equity in net loss of affiliates	—			—		(13		)	(13		)
Income from operations of businesses held for sale	7,818			85,522		29,840			160,943
Loss on sale	(350		)	—		(14,280		)	—
Income tax provision	2,613			14,226		10,175			32,868
Income from discontinued operations, net of tax	$	4,855		$	71,296	$	5,385		$	128,075

The assets and liabilities associated with the discontinued operations have been segregated in the condensed consolidated balance sheets for periods prior to the sale. The following table summarizes the major components of Radian Asset Assurance’s assets and liabilities held for sale on the condensed consolidated balance sheets as of the date indicated:

(In thousands)	December 31, 2014
Fixed-maturity investments	$	224,552
Equity securities	3,749
Trading securities	689,887
Short-term investments	435,413
Other invested assets	108,206
Other assets	274,637
Total assets held for sale	$	1,736,444
Unearned premiums	$	158,921
Reserve for losses and LAE	31,558
VIE debt	85,016
Derivative liabilities	183,370
Other liabilities	488,143
Total liabilities held for sale	$	947,008

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Note 7 - Reinsurance Reinsurance Transactions (Details) - Radian Guaranty [Member] $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2014	Dec. 31, 2012 transaction
Reinsurance Transaction Details [Line Items]
Number of Quota Share Reinsurance Agreements | transaction						2
Initial Quota Share Reinsurance Transaction [Member]
Reinsurance Transaction Details [Line Items]
Ceded Premiums Written	$ 3,822	$ 5,046	$ 7,889	$ 10,350
Ceded Premiums Earned	6,424	6,803	12,442	13,610
Fees and Commissions	828	1,262	$ 1,708	2,588
Ceded Insurance Commission Percentage			20.00%		25.00%
First Lien Primary Mortgage Insurance Risk In Force Ceded	1,000,000		$ 1,000,000
Percentage of Ceded Insurance Subjected to Change in Commission Percentage			66.70%
Second Quota Share Reinsurance Transaction [Member]
Reinsurance Transaction Details [Line Items]
Ceded Premiums Written	395	8,072	$ 6,924	15,365
Ceded Premiums Earned	3,039	7,197	11,807	13,782
Fees and Commissions	$ 2,154	$ 2,825	$ 4,439	$ 5,378
Percentage of Ceded Insurance Subjected to Change in Commission Percentage	50.00%		50.00%
Insurance Commissions and Fees	$ 5,800		$ 5,800
First Lien Primary Mortgage Insurance Risk In Force Ceded	1,400,000		1,400,000
Maximum [Member] | Initial Quota Share Reinsurance Transaction [Member]
Reinsurance Transaction Details [Line Items]
First Lien Primary Mortgage Insurance Risk In Force Ceded	1,600,000		1,600,000
Maximum [Member] | Second Quota Share Reinsurance Transaction [Member]
Reinsurance Transaction Details [Line Items]
First Lien Primary Mortgage Insurance Risk In Force Ceded	$ 0		$ 0

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Note 3 - Segment Reporting Reconciliation of Segment to Consolidated Results Pretax (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Net Gains/Losses on All Financial Instruments	[1]	$ 28,448	$ 25,512	$ 45,227	$ 68,619
Loss on Repurchase of Debt Instrument		(91,876)	0	(91,876)	0
Business Combination, Acquisition Related Costs		(567)	(6,732)	(774)	(6,732)
Amortization and impairment of intangible assets		(3,281)	0	(6,304)	0
Pretax income from continuing operations		79,984	92,887	217,434	219,984
Mortgage Insurance Segment
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted pretax operating income (loss)	[2],[3]	145,426	74,630	271,318	159,349
Change In Present Value of Estimated Credit Loss Payments		0	180	0	319
Mortgage and Real Estate Services Segment [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted pretax operating income (loss)	[3]	1,834	(523)	(157)	(1,252)
Mortgage Insurance and Mortgage and Real Estate Services Segments [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted pretax operating income (loss)		$ 147,260	$ 74,107	$ 271,161	$ 158,097

[1] The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains on investments and other financial instruments has been adjusted by $0.2 million and $0.3 million for the three and six months ended June 30, 2014, respectively, to reverse this item.

[2] For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment, as listed in the preceding tables. These amounts represent items that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations.

[3] Includes inter-segment expenses and revenues as listed in the notes to the preceding tables.

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Note 4 - Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following is a list of those assets that are measured at fair value by hierarchy level as of June 30, 2015:

(In millions)	Level I		Level II		Level III		Total
Assets at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	598.3	$	—	$	—	$	598.3
State and municipal obligations	—		330.8		—		330.8
Money market instruments	828.1		—		—		828.1
Corporate bonds and notes	—		1,321.7		—		1,321.7
RMBS	—		237.3		—		237.3
CMBS	—		383.4		—		383.4
Other ABS	—		274.0		—		274.0
Foreign government and agency securities	—		36.7		—		36.7
Equity securities	21.1		46.4		0.5		68.0
Other investments (1)	—		217.2		—		217.2
Total Investments at Fair Value (2)	1,447.5		2,847.5		0.5		4,295.5
Total Assets at Fair Value	$	1,447.5	$	2,847.5	$	0.5	$	4,295.5

______________________

(1) Comprising short-term certificates of deposit ($1.0 million) and short-term commercial paper ($216.2 million) included within Level II.

(2) Does not include certain other invested assets ($13.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

At June 30, 2015, total Level III assets of $0.5 million accounted for less than 0.1% of total assets measured at fair value. This investment was purchased during the three months ended June 30, 2015, and there were no related gains or losses recorded during the quarter. There were no Level III liabilities.

The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2014:

(In millions)	Level I		Level II		Total
Assets at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	836.9	$	3.0	$	839.9
State and municipal obligations	—		362.8		362.8
Money market instruments	600.3		—		600.3
Corporate bonds and notes	—		992.8		992.8
RMBS	—		132.3		132.3
CMBS	—		246.8		246.8
Other ABS	—		185.5		185.5
Foreign government and agency securities	—		37.7		37.7
Equity securities (1)	164.0		51.6		215.6
Other investments (2)	—		1.0		1.0
Total Investments at Fair Value (3)	1,601.2		2,013.5		3,614.7
Total Assets at Fair Value	$	1,601.2	$	2,013.5	$	3,614.7

______________________

(1) Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and various preferred stocks invested across numerous companies and industries included within Level II.

(2) Comprising short-term certificates of deposit.

(3) Does not include certain other invested assets ($14.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Also excludes investments classified as assets held for sale of $495.1 million, $839.2 million and $102.6 million, with fair values categorized in Level I, Level II and Level III, respectively.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our condensed consolidated balance sheets were as follows as of the dates indicated:

	June 30, 2015					December 31, 2014
(In millions)	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
Assets:
Other invested assets	$	13.6	$	21.0	(1)	$	14.6	$	20.5	(1)
Liabilities:
Long-term debt	1,224.9		1,681.0		(1)	1,192.3		1,859.3		(1)

______________________

(1) These estimated fair values would be classified in Level II of the fair value hierarchy.

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Note 5 - Investments (Tables)

6 Months Ended

Jun. 30, 2015

Investments [Abstract]

Unrealized Gain (Loss) on Investments [Table Text Block]

Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated:

	June 30, 2015
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	5,745	$	5,784	$	39	$	—
State and municipal obligations	17,668		18,476		810		2
Corporate bonds and notes	529,942		517,857		1,850		13,935
RMBS	158,134		156,532		513		2,115
CMBS	218,531		213,988		97		4,640
Other ABS	243,096		243,045		693		744
Foreign government and agency securities	23,330		23,160		186		356
	1,196,446		1,178,842		4,188		21,792
Equity securities available for sale	573		881		308		—
Total debt and equity securities	$	1,197,019	$	1,179,723	$	4,496	$	21,792

	December 31, 2014
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	5,709	$	5,751	$	48	$	6
State and municipal obligations	17,727		18,910		1,183		—
Corporate bonds and notes	277,678		284,408		7,288		558
RMBS	41,467		42,520		1,053		—
CMBS	57,358		58,234		876		—
Other ABS	109,420		107,701		8		1,727
Foreign government and agency securities	19,301		19,366		307		242
	528,660		536,890		10,763		2,533
Equity securities available for sale (1)	76,900		143,368		66,468		—
Total debt and equity securities	$	605,560	$	680,258	$	77,231	$	2,533

______________________

(1) Comprising broadly diversified domestic equity mutual funds ($143.0 million fair value) and a preferred stock investment in Freddie Mac ($0.4 million fair value).

Trading Securities (and Certain Trading Assets) [Table Text Block]

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:

(In thousands)	June 30, 2015		December 31, 2014
Trading securities:
U.S. government and agency securities	$	131,335	$	134,530
State and municipal obligations	312,340		343,926
Corporate bonds and notes	660,964		708,361
RMBS	80,772		89,810
CMBS	169,443		188,615
Other ABS	30,952		77,755
Foreign government and agency securities	13,548		18,331
Equity securities	67,081		72,256
Total	$	1,466,435	$	1,633,584

Gain (Loss) on Investments [Table Text Block]

Net realized and unrealized gains (losses) on investments and other financial instruments consisted of:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Net realized gains (losses):
Fixed-maturities held to maturity	$	—		$	—		$	—		$	(9	)
Fixed-maturities available for sale	(8		)	(604		)	(59		)	(599		)
Equities available for sale	68,723			—			68,723			—
Trading securities	(8,291		)	(41		)	(12,859		)	(4,392		)
Short-term investments	4			—			4			—
Other	1			(63		)	106			(53		)
Net realized gains (losses) on investments	60,429			(708		)	55,915			(5,053		)
Unrealized (losses) gains on trading securities	(31,638		)	28,941			(10,937		)	76,572
Total net gains on investments	28,791			28,233			44,978			71,519
Net (losses) gains on other financial instruments	(343		)	(2,901		)	249			(3,219		)
Net gains on investments and other financial instruments	$	28,448		$	25,332		$	45,227		$	68,300

Schedule Of Unrealized Losses [Table Text Block]

The following tables show the gross unrealized losses and fair value of our securities deemed “available for sale” aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:

June 30, 2015: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
State and municipal obligations	1	$	5,727	$	2	—	$	—	$	—	1	$	5,727	$	2
Corporate bonds and notes	95	408,203		13,528		7	10,172		407		102	418,375		13,935
RMBS	9	116,631		2,115		—	—		—		9	116,631		2,115
CMBS	30	195,913		4,640		—	—		—		30	195,913		4,640
Other ABS	28	114,059		273		10	39,860		471		38	153,919		744
Foreign government and agency securities	11	10,971		340		1	183		16		12	11,154		356
Total	174	$	851,504	$	20,898	18	$	50,215	$	894	192	$	901,719	$	21,792

December 31, 2014: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	—	$	—	$	—	1	$	3,455	$	6	1	$	3,455	$	6
Corporate bonds and notes	24	40,917		410		1	1,027		148		25	41,944		558
Other ABS	34	97,356		1,727		—	—		—		34	97,356		1,727
Foreign government and agency securities	4	6,353		242		—	—		—		4	6,353		242
Total	62	$	144,626	$	2,379	2	$	4,482	$	154	64	$	149,108	$	2,533

Investments Classified by Contractual Maturity Date [Table Text Block]

The contractual maturities of fixed-maturity investments are as follows:

	June 30, 2015
	Available for Sale
(In thousands)	Amortized Cost		Fair Value
Due in one year or less (1)	$	7,381	$	7,399
Due after one year through five years (1)	51,208		51,265
Due after five years through ten years (1)	345,233		340,126
Due after ten years (1)	172,863		166,487
RMBS (2)	158,134		156,532
CMBS (2)	218,531		213,988
Other ABS (2)	243,096		243,045
Total	$	1,196,446	$	1,178,842

______________________

(1) Actual maturities may differ as a result of calls before scheduled maturity.

(2) RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date.

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Note 1 - Condensed Consolidated Financial Statements - Basis of Presentation and Business Overview (Notes)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Description and Accounting Policies [Text Block]

Condensed Consolidated Financial Statements—Significant Accounting Policies and Business Overview

Significant Accounting Policies

Basis of Presentation

Our condensed consolidated financial statements include the accounts of Radian Group Inc. and its subsidiaries. We refer to Radian Group Inc. together with its consolidated subsidiaries as “Radian,” the “Company,” “we,” “us” or “our,” unless the context requires otherwise. We generally refer to Radian Group Inc. alone, without its consolidated subsidiaries, as “Radian Group.” Unless otherwise defined in this report, certain terms and acronyms used throughout this report are defined in the Glossary of Abbreviations and Acronyms included as part of this report.

Our condensed consolidated financial statements are prepared in accordance with GAAP and include the accounts of all wholly-owned subsidiaries. All intercompany accounts and transactions, and intercompany profits and losses, have been eliminated. We have condensed or omitted certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP pursuant to the instructions set forth in Article 10 of Regulation S-X of the SEC.

The financial information presented for interim periods is unaudited; however, such information reflects all adjustments that are, in the opinion of management, necessary for the fair statement of the financial position, results of operations, comprehensive income and cash flows for the interim periods presented. Such adjustments are of a normal recurring nature. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. These interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in our 2014 Form 10-K. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year or for any other period. Certain prior period amounts have been reclassified to conform to current period presentation, including the adoption of an update to the accounting standard for the presentation of debt issuance costs in financial statements, as further described below in Recent Accounting Pronouncements.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of our contingent assets and liabilities at the dates of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. While the amounts included in our condensed consolidated financial statements include our best estimates and assumptions, actual results may vary materially.

Other Significant Accounting Policies

During the second quarter of 2015, Radian Group completed a series of transactions for the purpose of strengthening its capital position, including to reduce its overall cost of capital and improve the maturity profile of its debt. See Recent Developments—Debt and Equity Transactionsin this Note 1 for more information.

June 2015 Purchases of Convertible Debt Prior to Maturity. We accounted for the June 2015 purchases of a portion of our outstanding convertible debt in exchange for cash and shares of Radian Group common stock as an induced conversion of convertible debt in accordance with the accounting standard regarding derecognition of debt with conversion and other options, and the accounting standard regarding debt modifications and extinguishments. The accounting standards require the recognition through earnings of an inducement charge equal to the fair value of the consideration delivered in excess of the consideration issuable under the original conversion terms. The remaining consideration delivered and transaction costs incurred are required to be allocated between the extinguishment of the liability component and the reacquisition of the equity component. Therefore, we recognized as a loss on induced conversion and debt extinguishment the sum of: (i) the inducement charge; (ii) the difference between the fair value and the carrying value of the liability component of the purchased debt; (iii) transaction costs allocated to the debt component; and (iv) unamortized debt issuance costs related to the purchased debt.

Accelerated Share Repurchase. Our ASR program consists of the combination of the purchase of Radian Group common stock from an investment bank and a forward contract with that investment bank indexed to Radian Group common stock. We account for the ASR program in accordance with the provisions of the accounting standards regarding derivatives and hedging for contracts indexed to an entity’s own stock, and the accounting standard regarding equity. The up-front payment to the investment bank as part of the ASR program is accounted for as a reduction to stockholders’ equity in our consolidated balance sheets in the period the payment was made. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares in the periods delivered. We reflect the ASR program as a repurchase of common stock in the periods delivered for purposes of calculating earnings per share and as forward contracts indexed to the company’s own common stock. The ASR program met all of the applicable criteria for equity classification, and therefore, was not accounted for as a derivative instrument.

See Note 2 in our 2014 Form 10-K for information regarding other significant accounting policies.

Recent Accounting Pronouncements

In May 2014, the FASB issued an update to the accounting standard regarding revenue recognition. This update is intended to provide a consistent approach in recognizing revenue. In accordance with the new standard, recognition of revenue occurs when a customer obtains control of promised goods or services, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. While this update is not expected to change revenue recognition principles related to our insurance products, this update may be applicable to revenues from our Services segment, which has been included in our condensed consolidated statements of operations beginning with the third quarter of 2014. In July 2015, the FASB delayed the effective date for this updated standard to interim and annual periods beginning after December 15, 2017. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update, if any.

In April 2015, the FASB issued an update to the accounting standard for the presentation of debt issuance costs in financial statements. The new standard requires an entity to present debt issuance costs related to a recognized debt liability as a direct reduction from the carrying amount of the related debt liability, consistent with debt discounts, rather than as a separate asset as currently required. The recognition and measurement guidance for debt issuance costs are not affected by the update. The provisions of this update are effective for interim and annual periods beginning after December 15, 2015, and must be applied on a retrospective basis for all periods presented. We early adopted this update effective June 30, 2015, as permitted for financial statements that have not been previously issued. The implementation of this update resulted in a reclassification of approximately $17.6 million of remaining debt issuance costs on our December 31, 2014 consolidated balance sheet, from other assets, to be presented as a reduction of the related debt liability. This update has also been applied retrospectively to prior periods presented. See Note 10 for additional information on the impact of the reclassification.

In April 2015, the FASB issued an update to the accounting standard for the accounting of internal-use software. The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The provisions of this update are effective for interim and annual periods beginning after December 15, 2015, and early adoption is permitted. Management is currently evaluating the potential impact to our financial statements, if any.

In May 2015, the FASB issued an update to the accounting standard for the accounting of short-duration insurance contracts by insurance entities. The amendments in this update require insurance entities to disclose certain information about the liability for unpaid claims and claim adjustment expenses. The additional information required is focused on improvements in disclosures regarding insurance liabilities, including the timing, nature and uncertainty of future cash flows related to insurance liabilities and the effect of those cash flows on the statement of comprehensive income. The disclosures required by this update are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016; early adoption is permitted. We are currently evaluating the impact to our financial statements and future disclosures as a result of this update.

Business Overview

We provide mortgage and real estate products and services and have two reportable business segments—Mortgage Insurance and Services. On April 1, 2015, Radian Guaranty completed the previously disclosed sale to Assured of 100% of the issued and outstanding shares of Radian Asset Assurance, a financial guaranty insurer, pursuant to the Radian Asset Assurance Stock Purchase Agreement dated as of December 22, 2014. As a result, until the April 1, 2015 sale date, the operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. Prior periods have been revised to conform to the current period presentation for these changes. See Note 2 for additional information related to discontinued operations.

Mortgage Insurance

Our Mortgage Insurance segment provides credit-related insurance coverage, principally through private mortgage insurance, to mortgage lending institutions. We provide our mortgage insurance products mainly through our wholly-owned subsidiary, Radian Guaranty. Private mortgage insurance protects mortgage lenders from all or a portion of default-related losses on residential mortgage loans made to home buyers who generally make down payments of less than 20% of the home’s purchase price. Private mortgage insurance also facilitates the sale of these low-downpayment mortgage loans in the secondary mortgage market, most of which are sold to the GSEs. Our Mortgage Insurance segment currently offers primary mortgage insurance coverage on residential First-liens, and at June 30, 2015, primary insurance on First-liens comprised approximately 97.4% of our $44.8 billion total direct RIF. At June 30, 2015, pool insurance, which we previously offered, represented approximately 2.5% of our total direct RIF.

The FHFA, the GSEs and state insurance regulators impose various capital and financial requirements on our insurance subsidiaries. These include financial requirements, such as Risk-to-capital, other risk-based capital measures and surplus requirements, as well as the PMIERs Financial Requirements discussed below. Failure to comply with applicable financial requirements may limit the amount of insurance that our insurance subsidiaries may write. The GSEs and our state insurance regulators also possess significant discretion with respect to our insurance subsidiaries.

On April 17, 2015, the FHFA issued the final PMIERs, setting forth revised requirements for private mortgage insurers, including Radian Guaranty, to remain eligible insurers of loans purchased by the GSEs. On June 30, 2015, the GSEs updated the PMIERs Financial Requirements to increase the amount of Available Assets that must be held by a private mortgage insurer for loans originated on or after January 1, 2016 that are insured under lender-paid mortgage insurance policies not subject to automatic termination under the HPA. Once the PMIERs become effective for existing eligible mortgage insurers on December 31, 2015, the PMIERs Financial Requirements will replace the capital adequacy standards under the current GSE eligibility requirements.

The PMIERs Financial Requirements require a mortgage insurer’s Available Assets to meet or exceed its Minimum Required Assets. Under the final PMIERs, Radian Guaranty’s Available Assets and Minimum Required Assets are determined on an aggregate basis, taking into account the assets and insured risk of Radian Guaranty and its affiliated reinsurers. Therefore, developments that impact the assets and insured risk of Radian Guaranty and its affiliated reinsurers individually (such as capital contributions from Radian Group) also will impact the aggregate Available Assets and Minimum Required Assets, and importantly, Radian Guaranty’s compliance with the PMIERs Financial Requirements. As a result, references to Radian Guaranty’s Available Assets and Minimum Required Assets take into consideration both Radian Guaranty and its affiliated reinsurers.

Based on our current estimates of Radian Guaranty’s Available Assets and Minimum Required Assets as of June 30, 2015, we expect that Radian Guaranty will have the ability to immediately comply with the PMIERs Financial Requirements through one or more future contributions of a portion of our holding company liquidity to Radian Guaranty and its affiliated reinsurers.

The implementation of the final PMIERs (as updated on June 30, 2015) will: (1) increase the amount of capital that Radian Guaranty is required to hold, and therefore, reduce our current returns on subsidiary capital; (2) potentially impact the type of business that Radian Guaranty is willing to write; (3) impose extensive and more stringent operational requirements in areas such as claim processing, loss mitigation, document retention, underwriting, quality control, reporting and monitoring, among others, that may result in additional costs to achieve and maintain compliance; and (4) require the consent of the GSEs for Radian Guaranty to take certain actions such as paying dividends, entering into various intercompany agreements, and commuting or reinsuring risk, among others.

The NAIC is in the process of reviewing the minimum capital and surplus requirements for mortgage insurers and is considering changes to the Model Act. While the outcome of this process is not known, it is possible that among other changes, the NAIC will recommend and adopt more stringent capital requirements than currently exist under the Model Act, which could increase the capital requirements for Radian Guaranty in states that adopt the new Model Act.

Services

Our Services segment provides outsourced services, information-based analytics and specialty consulting for buyers and sellers of, and investors in, mortgage loans and other real estate-related loans and securities as well as other forms of collateral. The primary services of our Services segment include: (1) loan review/due diligence; (2) surveillance; (3) valuation and component services; (4) REO management; and (5) EuroRisk mortgage services in the United Kingdom and Europe. These services and solutions are provided primarily through Clayton and its subsidiaries, including Green River Capital and Red Bell.

During the first quarter of 2015, Clayton further expanded its service offerings by acquiring Red Bell, a real estate brokerage company that provides products and services that include automated valuation models; broker price opinions used by investors, lenders and loan servicers; and advanced technology solutions for: (1) monitoring loan portfolio performance; (2) tracking non-performing loans; (3) managing REO assets; and (4) valuing and selling residential real estate through a secure platform. Red Bell is part of the Services segment. See Note 6 for additional information.

Recent Developments

Debt and Equity Transactions

During the second quarter of 2015, Radian Group successfully completed a series of transactions for the purpose of strengthening its capital position, including to reduce its overall cost of capital and improve the maturity profile of its debt. This series of transactions had four components:

• the issuance of $350 million aggregate principal amount of Senior Notes due 2020;

• the purchases of approximately $389.1 million aggregate principal amount of Convertible Senior Notes due 2017;

• the termination of a corresponding portion of the capped call transactions related to the purchased Convertible Senior Notes due 2017; and

• the entry into an ASR program to repurchase an aggregate of $202 million of Radian Group common stock.

The purchases of the Convertible Senior Notes due 2017 resulted in a pretax charge of approximately $91.9 million in the second quarter of 2015, recorded as loss on induced conversion and debt extinguishment.

See Notes 10 and 16 for additional information.

BofA Settlement Agreement

Implementation of the BofA Settlement Agreement commenced on February 1, 2015 for Subject Loans held in portfolio by the Insureds or purchased by the GSEs as of that date. Approximately 12% of the Subject Loans are neither held in portfolio by the Insureds nor owned by the GSEs, and require the consent of certain other investors for these loans to be included in the BofA Settlement Agreement, except with respect to certain limited rights of cancellation. The deadline for such consent has been extended to August 15, 2015. See Note 10 of Notes to Consolidated Financial Statements in our 2014 Form 10-K for additional information about the BofA Settlement Agreement.

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Note 6 - Goodwill and Other Intangible Assets, Net (Tables)

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

The following table shows the changes in the carrying amount of goodwill, all of which relates to our Services segment, as of and for the year-to-date periods ended June 30, 2015 and December 31, 2014:

(In thousands)	Goodwill		Accumulated Impairment Losses			Net
Balance at December 31, 2013	$	2,095	$	—		$	2,095
Goodwill acquired	191,932		—			191,932
Impairment losses	—		(2,095		)	(2,095		)
Balance at December 31, 2014	194,027		(2,095		)	191,932
Goodwill acquired	2,388		—			2,388
Impairment losses	—		—			—
Balance at June 30, 2015	$	196,415	$	(2,095	)	$	194,320

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The following is a summary of the gross and net carrying amounts and accumulated amortization of our other intangible assets as of and for the year-to-date periods indicated:

	As of June 30, 2015
(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	$	83,072	$	(6,939	)	$	76,133
Technology	10,940		(1,741		)	9,199
Trademark	8,300		(807		)	7,493
Client backlog	6,680		(3,295		)	3,385
Non-competition agreements	185		(75		)	110
Total	$	109,177	$	(12,857	)	$	96,320
	As of December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	$	79,203	$	(2,917	)	$	76,286
Technology	8,970		(797		)	8,173
Trademark	7,860		(393		)	7,467
Client backlog	6,680		(2,406		)	4,274
Non-competition agreements	145		(37		)	108
Total	$	102,858	$	(6,550	)	$	96,308

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The estimated aggregate amortization expense for the remainder of 2015 and thereafter is as follows (in thousands):

2015	$	6,548
2016	12,559
2017	11,918
2018	11,286
2019	10,050
2020	8,497
Thereafter	35,462

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Note 17 - Net Income Per Share (Tables)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The calculation of the basic and diluted net income per share was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except share and per share amounts)	2015		2014		2015		2014
Net income from continuing operations:
Net income from continuing operations - basic	$	45,193	$	103,537	$	136,920	$	249,517
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	3,707		5,503		7,380		10,958
Net income from continuing operations - diluted	$	48,900	$	109,040	$	144,300	$	260,475
Net income:
Net income from continuing operations - basic	$	45,193	$	103,537	$	136,920	$	249,517
Income from discontinued operations, net of tax	4,855		71,296		5,385		128,075
Net income - basic	50,048		174,833		142,305		377,592
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	3,707		5,503		7,380		10,958
Net income - diluted	$	53,755	$	180,336	$	149,685	$	388,550
Average common shares outstanding - basic	193,112		182,583		192,245		177,903
Dilutive effect of Convertible Senior Notes due 2017	12,438		7,599		11,789		8,306
Dilutive effect of Convertible Senior Notes due 2019	37,736		37,736		37,736		37,736
Dilutive effect of stock-based compensation arrangements (2)	3,364		2,861		3,211		2,822
Adjusted average common shares outstanding - diluted	246,650		230,779		244,981		226,767
Net income per share:
Basic:
Net income from continuing operations	$	0.23	$	0.57	$	0.71	$	1.40
Income from discontinued operations	0.03		0.39		0.03		0.72
Net income	$	0.26	$	0.96	$	0.74	$	2.12
Diluted:
Net income from continuing operations	$	0.20	$	0.47	$	0.59	$	1.15
Income from discontinued operations	0.02		0.31		0.02		0.56
Net income	$	0.22	$	0.78	$	0.61	$	1.71

________________

(1) As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion.

(2) The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of net income per share because they were anti-dilutive:

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2015	2014	2015	2014
Shares of common stock equivalents	264	1,484	530	1,484

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Note 6 - Goodwill and Other Intangible Assets, Net Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	$ 109,177	$ 102,858
Finite-Lived Intangible Assets, Accumulated Amortization	(12,857)	(6,550)
Finite-Lived Intangible Assets, Net	96,320	96,308
Customer Relationships [Member]
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	83,072	79,203
Finite-Lived Intangible Assets, Accumulated Amortization	(6,939)	(2,917)
Finite-Lived Intangible Assets, Net	76,133	76,286
Technology-Based Intangible Assets [Member]
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	10,940	8,970
Finite-Lived Intangible Assets, Accumulated Amortization	(1,741)	(797)
Finite-Lived Intangible Assets, Net	9,199	8,173
Trademarks [Member]
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	8,300	7,860
Finite-Lived Intangible Assets, Accumulated Amortization	(807)	(393)
Finite-Lived Intangible Assets, Net	7,493	7,467
Order or Production Backlog [Member]
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	6,680	6,680
Finite-Lived Intangible Assets, Accumulated Amortization	(3,295)	(2,406)
Finite-Lived Intangible Assets, Net	3,385	4,274
Noncompete Agreements [Member]
Schedule of Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	185	145
Finite-Lived Intangible Assets, Accumulated Amortization	(75)	(37)
Finite-Lived Intangible Assets, Net	$ 110	$ 108

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Note 15 - Commitments and Contingencies Purchase Committment, Excluding Long Term Committment (Details) $ in Millions	Jun. 30, 2015 USD ($)
Purchase Commitment [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase Commitment, Remaining Minimum Amount Committed	$ 7.4

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Condensed Consolidated Balance Sheets (Unaudited) Statement - Scenario, Unspecified [Domain] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Fixed-maturities available for sale—at fair value (amortized cost $1,196,446 and $528,660)	$ 1,178,842	$ 536,890
Equity securities available for sale—at fair value (cost $573 and $76,900)	881	143,368
Trading securities—at fair value	1,466,435	1,633,584
Short-term investments—at fair value	1,649,370	1,300,872
Other invested assets	13,620	14,585
Total investments	4,309,148	3,629,299
Cash	51,381	30,465
Restricted cash	12,633	14,031
Accounts and notes receivable	72,093	85,792
Deferred income taxes, net (Note 12)	651,238	700,201
Goodwill and other intangible assets, net (Note 6)	290,640	288,240
Other assets (Note 8)	349,371	357,864
Assets held for sale (Note 2)	0	1,736,444	[1]
Total assets	5,736,504	6,842,336
LIABILITIES AND STOCKHOLDERS’ EQUITY
Unearned premiums	665,947	644,504
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)	1,204,792	1,560,032
Long-term debt (Note 10)	1,224,892	1,192,299
Other liabilities	278,929	326,743
Liabilities held for sale (Note 2)	0	947,008
Total liabilities	$ 3,374,560	$ 4,670,586
Commitments and Contingencies (Note 15)
Equity component of currently redeemable convertible senior notes (Note 10)	$ 8,546	$ 74,690
Stockholders’ equity
Common stock: par value $.001 per share; 485,000,000 shares authorized at June 30, 2015 and December 31, 2014, respectively; 226,147,213 and 208,601,020 shares issued at June 30, 2015 and December 31, 2014, respectively; 208,586,516 and 191,053,530 shares outstanding at June 30, 2015 and December 31, 2014, respectively	226	209
Treasury stock, at cost: 17,560,597 and 17,547,490 shares at June 30, 2015 and December 31, 2014, respectively	(893,176)	(892,961)
Additional paid-in capital	2,709,721	2,531,513
Retained earnings	548,161	406,814
Accumulated other comprehensive (loss) income (“AOCI”) (Note 11)	(11,534)	51,485
Total stockholders’ equity	2,353,398	2,097,060
Total liabilities and stockholders’ equity	$ 5,736,504	$ 6,842,336

[1] Assets held for sale are not part of the Mortgage Insurance or Services segments.

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Note 4 - Fair Value of Financial Instruments Fair Value Assets Liabilities by Hierarchy Level (Details) - USD ($)		3 Months Ended			6 Months Ended
		Jun. 30, 2015		Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014	Dec. 31, 2014
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value by Hierarchy Level [Line Items]
Other Invested Assets, Carrying Amount		$ 13,600,000			$ 13,600,000			$ 14,600,000
Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		4,295,500,000	[1]		4,295,500,000	[1]		3,614,700,000	[2]
Total Assets at Fair Value		4,295,500,000			4,295,500,000			3,614,700,000
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount		0		$ 0	0		$ 0
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount		0		0	0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net		0			0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net		0			0
US government and agency securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		598,300,000			598,300,000			839,900,000
State and municipal obligations | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		330,800,000			330,800,000			362,800,000
Money market instruments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		828,100,000			828,100,000			600,300,000
Corporate bonds and notes | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		1,321,700,000			1,321,700,000			992,800,000
RMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		237,300,000			237,300,000			132,300,000
CMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		383,400,000			383,400,000			246,800,000
Other ABS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		274,000,000			274,000,000			185,500,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3				$ 17,300,000			$ 17,300,000
Foreign government securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		36,700,000			36,700,000			37,700,000
Equity securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		68,000,000			68,000,000			215,600,000	[3]
Other investments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		217,200,000	[4]		217,200,000	[4]		1,000,000	[5]
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		1,447,500,000	[1]		1,447,500,000	[1]		1,601,200,000	[2]
Total Assets at Fair Value		1,447,500,000			1,447,500,000			1,601,200,000
Assets Held-for-sale, Long Lived, Fair Value Disclosure								495,100,000
Fair Value, Inputs, Level 1 | US government and agency securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		598,300,000			598,300,000			836,900,000
Fair Value, Inputs, Level 1 | State and municipal obligations | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0			0
Fair Value, Inputs, Level 1 | Money market instruments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		828,100,000			828,100,000			600,300,000
Fair Value, Inputs, Level 1 | Corporate bonds and notes | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0			0
Fair Value, Inputs, Level 1 | RMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0			0
Fair Value, Inputs, Level 1 | CMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0			0
Fair Value, Inputs, Level 1 | Other ABS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0			0
Fair Value, Inputs, Level 1 | Foreign government securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0			0
Fair Value, Inputs, Level 1 | Equity securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		21,100,000			21,100,000			164,000,000	[3]
Fair Value, Inputs, Level 1 | Other investments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0	[4]		0	[4]		0	[5]
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		2,847,500,000	[1]		2,847,500,000	[1]		2,013,500,000	[2]
Total Assets at Fair Value		2,847,500,000			2,847,500,000			2,013,500,000
Assets Held-for-sale, Long Lived, Fair Value Disclosure								839,200,000
Fair Value, Inputs, Level 2 | US government and agency securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0			3,000,000
Fair Value, Inputs, Level 2 | State and municipal obligations | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		330,800,000			330,800,000			362,800,000
Fair Value, Inputs, Level 2 | Money market instruments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0			0
Fair Value, Inputs, Level 2 | Corporate bonds and notes | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		1,321,700,000			1,321,700,000			992,800,000
Fair Value, Inputs, Level 2 | RMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		237,300,000			237,300,000			132,300,000
Fair Value, Inputs, Level 2 | CMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		383,400,000			383,400,000			246,800,000
Fair Value, Inputs, Level 2 | Other ABS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		274,000,000			274,000,000			185,500,000
Fair Value, Inputs, Level 2 | Foreign government securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		36,700,000			36,700,000			37,700,000
Fair Value, Inputs, Level 2 | Equity securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		46,400,000			46,400,000			51,600,000	[3]
Fair Value, Inputs, Level 2 | Other investments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		217,200,000	[4]		217,200,000	[4]		1,000,000	[5]
Fair Value, Inputs, Level 2 | Commercial Paper | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		216,200,000			216,200,000
Fair Value, Inputs, Level 2 | Short Term CDs | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		1,000,000			1,000,000
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value	[1]	500,000			500,000
Total Assets at Fair Value		500,000			500,000			0
Liabilities, Fair Value Disclosure, Recurring		0			0
Assets Held-for-sale, Long Lived, Fair Value Disclosure								102,600,000
Variable Interest Entity Debt								$ 3,800,000
Total Level III Liabilities								100.00%
Fair Value, Inputs, Level 3 | US government and agency securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0
Fair Value, Inputs, Level 3 | State and municipal obligations | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0
Fair Value, Inputs, Level 3 | Money market instruments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0
Fair Value, Inputs, Level 3 | Corporate bonds and notes | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0
Fair Value, Inputs, Level 3 | RMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0
Fair Value, Inputs, Level 3 | CMBS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0
Fair Value, Inputs, Level 3 | Other ABS | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0
Fair Value, Inputs, Level 3 | Foreign government securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		0			0
Fair Value, Inputs, Level 3 | Equity securities | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value		500,000			500,000
Total Assets at Fair Value		500,000			500,000
Gain (Loss) on Investments		0
Fair Value, Inputs, Level 3 | Other investments | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Investments at Fair Value	[4]	$ 0			$ 0
Maximum [Member] | Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value by Hierarchy Level [Line Items]
Total Level III Assets as a Percentage of Total Assets Measured at Fair Value		0.10%			0.10%

[1] Does not include certain other invested assets ($13.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

[2] Does not include certain other invested assets ($14.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Also excludes investments classified as assets held for sale of $495.1 million, $839.2 million and $102.6 million, with fair values categorized in Level I, Level II and Level III, respectively.

[3] Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and various preferred stocks invested across numerous companies and industries included within Level II.

[4] Comprising short-term certificates of deposit ($1.0 million) and short-term commercial paper ($216.2 million) included within Level II.

[5] Comprising short-term certificates of deposit.

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Condensed Consolidated Statements of Changes in Common Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Parent	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive Income
Beginning Balance, at Dec. 31, 2013		$ 939,645	$ 191	$ (892,807)	$ 2,347,104	$ (552,226)	$ 37,383
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 377,592	377,592	0	0	0	377,592	0
Net foreign currency translation adjustment, net of tax	0
Net unrealized loss on investments, net of tax		13,634	0	0	0	0	13,634
Repurchases of common stock under incentive plans		(154)	0	(154)	0	0	0
Stock Issued During Period, Value, New Issues		247,388	18		247,370
Issuance of common stock under benefit plans		487	0	0	487	0	0
Issuance of common stock under incentive plans		175	0	0	175	0	0
Stock-based compensation expense, net		6,390	0	0	6,390	0	0
Dividends declared		(910)	0	0	(910)	0	0
Ending Balance, at Jun. 30, 2014		1,584,247	209	(892,961)	2,600,616	(174,634)	51,017
Beginning Balance, at Dec. 31, 2014	2,097,060	2,097,060	209	(892,961)	2,531,513	406,814	51,485
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	142,305	142,305	0	0	0	142,305	0
Net foreign currency translation adjustment, net of tax	32	32	0	0	0	0	32
Net unrealized loss on investments, net of tax		(63,051)	0	0	0	0	(63,051)
Repurchases of common stock under incentive plans		(215)	0	(215)	0	0	0
Issuance of common stock under benefit plans		482	0	0	482	0	0
Issuance of common stock under incentive plans		1,113	1	0	1,112	0	0
Stock-based compensation expense, net		6,494	0	0	6,494	0	0
Stock Issued During Period, Value, Conversion of Convertible Securities		349,061	28	0	349,033	0	0
Stock Repurchased During Period, Value		(202,000)	(9)	0	(201,991)	0	0
Impact of Termination of Capped Call Transaction		11,973	(3)	0	11,976	0	0
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt, Subsequent Adjustments		11,102	0	0	11,102	0	0
Dividends, Common Stock, Cash		(958)	0	0	0	(958)	0
Ending Balance, at Jun. 30, 2015	$ 2,353,398	$ 2,353,398	$ 226	$ (893,176)	$ 2,709,721	$ 548,161	$ (11,534)

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Note 9 - Losses and LAE Mortgage Insurance Loss Reserves Rollforward (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Loss reserve [Roll Forward]
Balance at January 1				$ 1,560,032
Less reinsurance recoverables				28,119
Deduct paid claims and LAE related to [Abstract]
Add reinsurance recoverables		$ 13,227		13,227		$ 28,119
Balance at March 31		1,204,792		1,204,792		1,560,032
Mortgage Insurance Segment
Loss reserve [Roll Forward]
Balance at January 1		1,384,714	$ 1,893,960	1,560,032	$ 2,164,353	2,164,353
Less reinsurance recoverables	[1]	13,365	25,751	26,665	38,363	38,363
Balance at beginning of period, net of reinsurance recoverables		1,371,349	1,868,209	1,533,367	2,125,990	2,125,990
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract]
Current year	[2],[3]	53,617	75,472	134,054	184,321
Prior years	[2]	(19,835)	(11,207)	(55,195)	(70,896)
Total incurred losses and LAE		33,782	64,265	78,859	113,425
Deduct paid claims and LAE related to [Abstract]
Paid Losses and LAE Current year	[3]	576	803	576	803
Paid losses and LAE Prior years		211,440	239,448	418,535	546,389
Total paid losses and LAE		212,016	240,251	419,111	547,192
Balance at end of period, net of reinsurance recoverables		1,193,115	1,692,223	1,193,115	1,692,223	1,533,367	$ 2,125,990
Add reinsurance recoverables	[1]	11,677	22,458	11,677	22,458	26,665	38,363
Balance at March 31		$ 1,204,792	1,714,681	$ 1,204,792	1,714,681	$ 1,560,032	2,164,353
Mortgage Insurance Segment | Primary Mortgage Product [Member]
Default To Claim Rate Detail [Abstract]
Weighted Average Default To Claim Rate Assumption Net Of Denials Rescissions and Reinstatements				50.00%		52.00%
Weighted Average Default To Claim Rate Assumption Excluding Pending Claims Net Of Denials And Rescissions				45.00%
Default To Claim Rate Estimate, Gross, For New Defaults		14.00%		14.00%		16.00%
Default To Claim Rate Estimate, Gross, For Pre-Foreclosure Stage Defaults		65.00%		65.00%
Gross Default To Claim Rate Estimate		81.00%		81.00%
Bank of America Settlement Agreement [Member] | Mortgage Insurance Segment
Deduct paid claims and LAE related to [Abstract]
Total paid losses and LAE				$ 174,600
Classification Error [Member] | Mortgage Insurance Segment
Add losses and LAE incurred in respect of default notices reported and unreported in [Abstract]
Current year			(14,400)		(48,200)	$ (71,800)	(65,000)	$ (75,700)
Prior years			$ 14,400		$ 48,200	$ 71,800	$ 65,000	$ 75,700

[1] Related to ceded losses on captive reinsurance transactions and the QSR Transactions. See Note 7 for additional information.

[2] Amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year and prior years have been reclassified to correct an error. There was no net change to total incurred losses in any period as a result of these reclassifications. For the three and six months ended June 30, 2014, the amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year have been revised downward by approximately $14.4 million and $48.2 million, respectively, with an equal and offsetting adjustment to the amount previously reported for default notices reported and unreported in prior years. For the years ended December 31, 2014, 2013 and 2012, the amounts previously reported related to losses and LAE incurred from current year default notices should have been lower by approximately $71.8 million, $65.0 million and $75.7 million, respectively, with equal and offsetting adjustments to the incurred loss amounts related to prior years’ default notices.

[3] Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.

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Note 9 - Losses and LAE (Tables)

6 Months Ended

Jun. 30, 2015

Insurance Loss Reserves [Abstract]

Reserve for Losses and LAE by category [Table Text Block]

The following table shows our reserve for losses and LAE by category at the end of each period indicated:

(In thousands)	June 30, 2015		December 31, 2014
Reserve for losses by category:
Prime	$	562,918	$	700,174
Alt-A	256,854		292,293
A minus and below	148,043		179,103
IBNR and other	125,038		223,114
LAE	48,141		56,164
Reinsurance recoverable (1)	11,677		26,665
Total primary reserve	1,152,671		1,477,513
Pool	47,902		75,785
IBNR and other	891		1,775
LAE	2,353		3,542
Total pool reserve	51,146		81,102
Total First-lien reserve	1,203,817		1,558,615
Second-lien and other (2)	975		1,417
Total reserve for losses	$	1,204,792	$	1,560,032

______________________

(1) Primarily represents ceded losses on captive transactions and the QSR Transactions.

(2) Does not include our Second-lien PDR that is included in other liabilities.

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

The following table presents information relating to our reserve for losses, including our IBNR reserve and LAE but excluding Second-lien PDR, for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Balance at beginning of period	$	1,384,714		$	1,893,960		$	1,560,032		$	2,164,353
Less reinsurance recoverables (1)	13,365			25,751			26,665			38,363
Balance at beginning of period, net of reinsurance recoverables	1,371,349			1,868,209			1,533,367			2,125,990
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2) (3)	53,617			75,472			134,054			184,321
Prior years (3)	(19,835		)	(11,207		)	(55,195		)	(70,896		)
Total incurred	33,782			64,265			78,859			113,425
Deduct paid claims and LAE related to:
Current year (2)	576			803			576			803
Prior years	211,440			239,448			418,535			546,389
Total paid	212,016			240,251			419,111			547,192
Balance at end of period, net of reinsurance recoverables	1,193,115			1,692,223			1,193,115			1,692,223
Add reinsurance recoverables (1)	11,677			22,458			11,677			22,458
Balance at end of period	$	1,204,792		$	1,714,681		$	1,204,792		$	1,714,681

_________________________

(1) Related to ceded losses on captive reinsurance transactions and the QSR Transactions. See Note 7 for additional information.

(2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.

(3) Amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year and prior years have been reclassified to correct an error. There was no net change to total incurred losses in any period as a result of these reclassifications. For the three and six months ended June 30, 2014, the amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year have been revised downward by approximately $14.4 million and $48.2 million, respectively, with an equal and offsetting adjustment to the amount previously reported for default notices reported and unreported in prior years. For the years ended December 31, 2014, 2013 and 2012, the amounts previously reported related to losses and LAE incurred from current year default notices should have been lower by approximately $71.8 million, $65.0 million and $75.7 million, respectively, with equal and offsetting adjustments to the incurred loss amounts related to prior years’ default notices.

Rescissions And Denials [Table Text Block]

The following table illustrates the amount of First-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of any Reinstatements of previous Rescissions or Claim Denials within each period. Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement represent such activities, prior to the February 1, 2015 Implementation Date, on loans that subsequently became subject to the BofA Settlement Agreement.

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2015			2014			2015			2014
Rescissions, net	$	3.4		$	7.6		$	7.2		$	14.0
Claim Denials, net	3.6			6.4			9.2			25.3
Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement	(47.1		)	(2.5		)	(71.2		)	0.5
Net First-lien claims submitted for payment that were (reinstated), rescinded or denied (1)	$	(40.1	)	$	11.5		$	(54.8	)	$	39.8

______________________

(1) Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured.

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Note 12 - Income Taxes Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Operating Loss Carryforwards [Line Items]
Loss on Repurchase of Debt Instrument	$ 91,876	$ 0	$ 91,876	$ 0
Operating Loss Carryforwards	1,300,000		1,300,000
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	6,000		6,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	35,500		35,500
State and Local NOL Carryforwards [Member]
Operating Loss Carryforwards [Line Items]
Valuation Allowance, Amount	21,500		$ 21,500
Convertible Senior Notes Due 2017
Operating Loss Carryforwards [Line Items]
Loss on Repurchase of Debt Instrument	91,876
Induced Conversion of Convertible Debt Expense	35,500
Effective Income Tax Rate Reconciliation, Deduction, Other, Amount	28,900
Extinguishment of Debt, Gain (Loss), Income Tax	$ 22,000

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Note 15 - Commitments and Contingencies (Notes)

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings

We are routinely involved in a number of legal actions, regulatory inquiries, investigations and reviews, audits and other proceedings, the outcomes of which are uncertain. The legal proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require significant expenditures or have other effects on our business. In accordance with applicable accounting standards and guidance, we establish accruals for a legal proceeding only when we determine both that it is probable that a loss has been incurred and the amount of the loss is reasonably estimable. We accrue the amount that represents our best estimate of the probable loss; however, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely, we accrue the minimum amount of the range.

In the course of our regular review of pending legal matters, we determine whether it is reasonably possible that a potential loss relating to a legal proceeding may have a material impact on our liquidity, results of operations or financial condition. If we determine such a loss is reasonably possible, we disclose information relating to such potential loss, including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly basis, we review relevant information with respect to legal loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or range of losses based on such reviews. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount accrued, if any.

Loss estimates are inherently subjective, based on currently available information, and are subject to management’s judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and unpredictability surrounding the outcome of legal and other proceedings, actual results may differ materially from any amounts that have been accrued.

As previously disclosed, we had been named as a defendant in certain putative class action lawsuits alleging, among other things, that our captive reinsurance agreements violated RESPA. The cases included The White Case, The Menichino Case and The Manners Case, as referenced in Note 17 of our 2014 Form 10-K. On March 25, 2015, Radian Guaranty and the plaintiffs in these putative class action lawsuits entered into a settlement agreement, pursuant to which the plaintiffs agreed to voluntarily dismiss their claims with prejudice and to fully release Radian Guaranty from any future claims related to the claims in these lawsuits.

We are involved in litigation that has arisen in the normal course of our business. We are contesting the allegations in each such pending action and management believes, based on current knowledge and after consultation with counsel, that the outcome of such litigation will not have a material adverse effect on our consolidated financial condition. However, the outcome of litigation and other legal and regulatory matters is inherently uncertain, and it is possible that one or more of the matters currently pending or threatened could have an unanticipated adverse effect on our liquidity, financial condition or results of operations for any particular period.

We are subject to regulatory inquiries, investigations and reviews. We and other mortgage insurers have been subject to inquiries from the Minnesota Department of Commerce requesting information relating to captive reinsurance. We have cooperated with these requests for information. In June 2015, Radian Guaranty executed a Consent Order with the Minnesota Department of Commerce that resolved the Minnesota Department of Commerce’s outstanding inquiries related to captive reinsurance arrangements involving mortgage insurance in Minnesota without any findings of wrongdoing. As part of the Consent Order, Radian Guaranty paid an immaterial amount to Minnesota and agreed not to enter into new captive reinsurance arrangements for a period of ten years ending in June 2025. We have not entered into any new captive reinsurance arrangements since 2007.

In June 2015, we and other mortgage insurers received a letter from the Office of the Commissioner of Insurance of the State of Wisconsin (“Wisconsin OCI”) requesting information pertaining to customized insurance rates and terms offered to mortgage insurance customers. We submitted a response to the Wisconsin OCI in June 2015, as requested. Although we believe we are in compliance with applicable Wisconsin state law requirements for mortgage guaranty insurance, we cannot predict the outcome of this matter or whether additional inquiries, actions or proceedings may be pursued against us by the Wisconsin OCI or other regulators.

On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties of approximately$157 million. The Deficiency Amount has not been reduced to reflect our NOL carryback ability. On December 3, 2014, we petitioned the U.S. Tax Court to litigate the Deficiency Amount. See Note 12 for additional information regarding this litigation.

Our Master Policies establish the timeline within which any suit or action arising from any right of an insured under the policy generally must be commenced. We continue to face a number of challenges from certain customers regarding our Loss Mitigation Activities, which have resulted in some reversals of our decisions regarding Rescissions, Claim Denials or Claim Curtailments. We are currently in discussions with some customers regarding our Loss Mitigation Activities and our claim payment practices, which if not resolved, could result in arbitration or additional judicial proceedings. See Note 9 for further information.

Further, we have identified loans in our total defaulted portfolio (in particular, our older defaulted portfolio) for which actions or proceedings such as foreclosure that provide the insured with title to the property may not have been commenced within the outermost deadline established in our Prior Master Policy. We currently are in discussions with the servicers for these loans regarding this potential violation and our corresponding rights under the Prior Master Policy. While we can provide no assurance regarding the outcome of these discussions or the ultimate resolution of these issues, it is possible that these discussions could result in arbitration or legal proceedings.

The elevated levels of our Loss Mitigation Activities (related to servicer negligence) have led to an increased risk of litigation by lenders, policyholders and servicers challenging our right to rescind coverage, deny claims or curtail claim amounts. We believe that our loss mitigation actions are justified under our policies. However, in the event we are not successful in defending our Loss Mitigation Activities, we may need to reassume the risk on and increase loss reserves for previous Rescissions or pay additional claims on curtailed amounts. See Note 9 for further information.

Other

Securities regulations became effective in 2005 that impose enhanced disclosure requirements on issuers of ABS (including mortgage-backed securities). To allow our customers to comply with these regulations at that time, we typically were required, depending on the amount of credit enhancement we were providing, to provide: (1) audited financial statements for the insurance subsidiary participating in the transaction; or (2) a full and unconditional holding company-level guarantee for our insurance subsidiaries’ obligations in such transactions. Radian Group has guaranteed two structured transactions for Radian Guaranty involving approximately $87.4 million of remaining credit exposure as of June 30, 2015.

As part of the non-investment-grade allocation component of our investment program, we had unfunded commitments of $7.4 million at June 30, 2015, related to alternative investments that are primarily private equity structures. These commitments have capital calls expected through 2015, with the possibility of additional calls through 2017, and certain fixed expiration dates or other termination clauses.

As previously disclosed, Radian Asset Assurance, our former financial guaranty subsidiary, received a series of claims (€13.5 million, or $16.4 million, as of December 31, 2014) from one of its trade credit and surety ceding companies related to surety bonds for Spanish housing cooperative developments. This legal matter was part of our discontinued operations as of December 31, 2014, and was transferred to Assured at the completion of the sale of Radian Asset Assurance on April 1, 2015, pursuant to the Radian Asset Assurance Stock Purchase Agreement. As a result, we no longer have any risk of loss associated with this matter.

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Note 10 - Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2015

Debt Instrument [Line Items]

Schedule of Long-term Debt Instruments [Table Text Block]

The carrying value of our long-term debt at June 30, 2015 and December 31, 2014 was as follows:

(In thousands)		June 30, 2015		December 31, 2014
9.000%	Senior Notes due 2017	$	191,256	$	190,245
3.000%	Convertible Senior Notes due 2017	51,917		371,336
2.250%	Convertible Senior Notes due 2019	342,980		336,133
5.500%	Senior Notes due 2019	295,198		294,585
5.250%	Senior Notes due 2020	343,541		—
	Total long-term debt	$	1,224,892	$	1,192,299

Schedule of Liability and Equity Components of Convertible Debt [Table Text Block]

The convertible notes are reflected on our condensed consolidated balance sheets as follows:

	Convertible Senior Notes due 2017						Convertible Senior Notes due 2019
(In thousands)	June 30, 2015			December 31, 2014			June 30, 2015			December 31, 2014
Liability component:
Principal	$	60,914		$	450,000		$	399,992		$	400,000
Debt discount, net (1)	(8,546		)	(74,690		)	(51,793		)	(57,989		)
Debt issuance costs (1)	(451		)	(3,974		)	(5,219		)	(5,878		)
Net carrying amount	$	51,917		$	371,336		$	342,980		$	336,133
Equity component of currently redeemable convertible senior notes	$	8,546		$	74,690		$	—		$	—

__________________

(1) Included within long-term debt and is being amortized over the life of the convertible notes.

Schedule of Interest Expense Recognized Related to Convertible Debt [Table Text Block]

The following tables set forth total interest expense recognized related to the convertible notes for the periods indicated:

	Convertible Senior Notes due 2017
	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2015		2014		2015		2014
Contractual interest expense	$	3,122	$	3,375	$	6,497	$	6,750
Amortization of debt issuance costs	298		304		616		604
Amortization of debt discount	5,394		5,312		11,102		10,498
Total interest expense	$	8,814	$	8,991	$	18,215	$	17,852

	Convertible Senior Notes due 2019
	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2015		2014		2015		2014
Contractual interest expense	$	2,250	$	2,250	$	4,500	$	4,500
Amortization of debt issuance costs	330		319		658		635
Amortization of debt discount	3,123		2,934		6,196		5,823
Total interest expense	$	5,703	$	5,503	$	11,354	$	10,958

Accounting Standards Update 2015-03 [Member]

Debt Instrument [Line Items]

Schedule of Long-term Debt Instruments [Table Text Block]

The following illustrates the impact of the reclassification:

		December 31, 2014
(In thousands)		As Previously Reported		Adjustment			As Adjusted
9.000%	Senior Notes due 2017	$	192,605	$	(2,360	)	$	190,245
3.000%	Convertible Senior Notes due 2017	375,310		(3,974		)	371,336
2.250%	Convertible Senior Notes due 2019	342,011		(5,878		)	336,133
5.500%	Senior Notes due 2019	300,000		(5,415		)	294,585
	Total long-term debt	$	1,209,926	$	(17,627	)	$	1,192,299

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Note 17 - Net Income Per Share (Notes)

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common shareholders by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Dilutive potential common shares relate to our stock-based compensation arrangements and our outstanding convertible senior notes. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations.

The calculation of the basic and diluted net income per share was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except share and per share amounts)	2015		2014		2015		2014
Net income from continuing operations:
Net income from continuing operations - basic	$	45,193	$	103,537	$	136,920	$	249,517
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	3,707		5,503		7,380		10,958
Net income from continuing operations - diluted	$	48,900	$	109,040	$	144,300	$	260,475
Net income:
Net income from continuing operations - basic	$	45,193	$	103,537	$	136,920	$	249,517
Income from discontinued operations, net of tax	4,855		71,296		5,385		128,075
Net income - basic	50,048		174,833		142,305		377,592
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	3,707		5,503		7,380		10,958
Net income - diluted	$	53,755	$	180,336	$	149,685	$	388,550
Average common shares outstanding - basic	193,112		182,583		192,245		177,903
Dilutive effect of Convertible Senior Notes due 2017	12,438		7,599		11,789		8,306
Dilutive effect of Convertible Senior Notes due 2019	37,736		37,736		37,736		37,736
Dilutive effect of stock-based compensation arrangements (2)	3,364		2,861		3,211		2,822
Adjusted average common shares outstanding - diluted	246,650		230,779		244,981		226,767
Net income per share:
Basic:
Net income from continuing operations	$	0.23	$	0.57	$	0.71	$	1.40
Income from discontinued operations	0.03		0.39		0.03		0.72
Net income	$	0.26	$	0.96	$	0.74	$	2.12
Diluted:
Net income from continuing operations	$	0.20	$	0.47	$	0.59	$	1.15
Income from discontinued operations	0.02		0.31		0.02		0.56
Net income	$	0.22	$	0.78	$	0.61	$	1.71

________________

(1) As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion.

(2) The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements were not included in the calculation of net income per share because they were anti-dilutive:

	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2015	2014	2015	2014
Shares of common stock equivalents	264	1,484	530	1,484

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Note 13 - Statutory Information Risk To Capital Calculation (Details) $ in Millions		6 Months Ended	12 Months Ended
		Jun. 30, 2015 USD ($) state	Dec. 31, 2014 USD ($)
Risk to Capital Line Items [Line Items]
Risk To Capital Ratio, Regulatory Maximum		25
Radian Guaranty [Member]
Risk to Capital Line Items [Line Items]
Percentage of New Insurance Written Attributable To States With Statutory Or Regulatory Risk Based Capital Requirements		56.00%	56.00%
Risk In Force	[1]	$ 32,290.6	$ 30,615.7
Statutory capital		1,367.0	1,325.2
Contingency reserve		592.7	389.4
Statutory Accounting Practice, Statutory Position		$ 1,959.7	$ 1,714.6
Risk-to-capital		16.5	17.9
Statutory Accounting Practices, Statutory Net Income Amount		$ 295.7
Mortgage Insurance Segment | State Insurance Regulations [Member]
Risk to Capital Line Items [Line Items]
Number Of States That Have A Statutory Or Regulatory Risk Based Capital Requirement | state		16
Minimum [Member] | Non RBC States [Member]
Risk to Capital Line Items [Line Items]
Capital Required for Capital Adequacy		$ 1.0
Maximum [Member] | Non RBC States [Member]
Risk to Capital Line Items [Line Items]
Capital Required for Capital Adequacy		$ 5.0

[1] Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans.

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net cash used in operating activities, continuing operations	$ (66,804)	$ (236,753)
Net cash used in operating activities, discontinued operations	(1,759)	(23,107)
Net cash used in operating activities	(68,563)	(259,860)
Cash flows from investing activities:
Proceeds from sales of fixed-maturity investments available for sale	57,309	9,802
Proceeds from sales of equity securities available for sale	145,550	0
Proceeds from sales and redemptions of trading securities	134,427	432,248
Proceeds from redemptions of fixed-maturity investments available for sale	25,179	100
Proceeds from redemptions of fixed-maturity investments held to maturity	0	300
Purchases of fixed-maturity investments available for sale	(725,640)	(165,256)
Purchases of equity securities available for sale	(500)	0
Purchases and redemptions of short-term investments, net	(348,702)	(197,299)
Sales of other assets, net	965	6,750
Proceeds from Divestiture of Businesses, Net of Cash Divested	784,866	0
Purchases of property and equipment, net	(10,654)	(8,041)
Acquisitions, net of cash acquired	(6,449)	(295,977)
Net cash provided by (used in) investing activities, continuing operations	56,351	(217,373)
Net cash provided by investing activities, discontinued operations	4,999	14,740
Net cash provided by (used in) investing activities	61,350	(202,633)
Cash flows from financing activities:
Dividends paid	(958)	(910)
Issuance of long-term debt, net	344,260	294,402
Purchases and redemptions of long-term debt	(128,303)	(57,223)
Proceeds from termination of capped calls	11,973	0
Issuance of common stock	0	247,388
Purchase of shares under ASR	(202,000)	0
Excess tax benefits from stock-based awards	2,679	106
Net cash provided by financing activities, continuing operations	27,651	483,763
Net cash provided by (used in) financing activities, discontinued operations	0	0
Net cash provided by financing activities	27,651	483,763
Effect of exchange rate changes on cash	57	(13)
Increase in cash	20,495	21,257
Cash, beginning of period	30,465	22,880
Less: Change in cash of business held for sale	(421)	1,758
Cash, end of period	51,381	42,379
Supplemental disclosures of cash flow information:
Income taxes paid	3,786	5,333
Interest paid	$ 29,547	$ 21,558

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Balance Sheet Parenthetical (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Available-for-sale Debt Securities, Amortized Cost Basis	$ 1,196,446	$ 528,660
Available-for-sale Equity Securities, Amortized Cost Basis	$ 573	$ 76,900
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	485,000,000	485,000,000
Common Stock, Shares, Issued	226,147,213	208,601,020
Common Stock, Shares, Outstanding	208,586,516	191,053,530
Treasury Stock, Shares	17,560,597	17,547,490

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Note 10 - Long-Term Debt (Notes)

6 Months Ended

Jun. 30, 2015

Long-term Debt, Unclassified [Abstract]

Long-term Debt

Long-Term Debt

As described in Note 1, as of June 30, 2015, we early adopted the accounting update related to the presentation of debt issuance costs in financial statements. We believe that presenting long-term debt net of debt issuance costs is preferable as it is consistent with our presentation of debt discounts and premiums. The change in accounting principle has been applied retrospectively to prior periods. As a result, a reclassification of approximately $17.6 million of remaining debt issuance costs was made on our December 31, 2014 consolidated balance sheet, resulting in a reduction in other assets and a reduction in long-term debt; there was no impact on our results of operations or retained earnings.

The following illustrates the impact of the reclassification:

		December 31, 2014
(In thousands)		As Previously Reported		Adjustment			As Adjusted
9.000%	Senior Notes due 2017	$	192,605	$	(2,360	)	$	190,245
3.000%	Convertible Senior Notes due 2017	375,310		(3,974		)	371,336
2.250%	Convertible Senior Notes due 2019	342,011		(5,878		)	336,133
5.500%	Senior Notes due 2019	300,000		(5,415		)	294,585
	Total long-term debt	$	1,209,926	$	(17,627	)	$	1,192,299

The carrying value of our long-term debt at June 30, 2015 and December 31, 2014 was as follows:

(In thousands)		June 30, 2015		December 31, 2014
9.000%	Senior Notes due 2017	$	191,256	$	190,245
3.000%	Convertible Senior Notes due 2017	51,917		371,336
2.250%	Convertible Senior Notes due 2019	342,980		336,133
5.500%	Senior Notes due 2019	295,198		294,585
5.250%	Senior Notes due 2020	343,541		—
	Total long-term debt	$	1,224,892	$	1,192,299

Senior Notes due 2020

In June 2015, we issued $350 million aggregate principal amount of Senior Notes due 2020 and received net proceeds of approximately $344.3 million. These notes mature on June 15, 2020 and bear interest at a rate of 5.250% per annum, payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2015. We have the option to redeem these notes, in whole or in part, at any time or from time to time prior to maturity at a redemption price equal to the greater of: (i) 100% of the aggregate principal amount of the notes to be redeemed; or (ii) the make-whole amount, which is the present value of the notes discounted at the applicable treasury rate plus 50 basis points, plus, in each case, accrued interest thereon to the redemption date.

The Senior Notes due 2020 have covenants customary for securities of this nature, including covenants related to the payments of the notes, reports, compliance certificates and modification of the covenants. Additionally, the indenture governing the Senior Notes due 2020 includes covenants restricting us from encumbering the capital stock of a designated subsidiary (as defined in the indenture for the notes) or disposing of any capital stock of any designated subsidiary unless either all of the stock is disposed of or we retain more than 80% of the stock.

Convertible Senior Notes due 2017 and 2019

Following the pricing of our Senior Notes due 2020, in June 2015, we entered into privately negotiated agreements with certain of the holders of our Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of our outstanding Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. We funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers approximately 28.4 million shares of Radian Group common stock. Our purchases of Convertible Senior Notes due 2017 resulted in a pretax charge of approximately $91.9 million in the second quarter of 2015. This charge represents:

• the $35.5 million market premium representing the consideration paid to the sellers of the Convertible Senior Notes due 2017 in excess of the conversion value of the purchased Convertible Senior Notes due 2017;

• the $52.3 million difference between the fair value and the carrying value of the liability component of the purchased Convertible Senior Notes due 2017; and

• the $4.1 million net impact of transaction costs and unamortized debt issuance costs on the purchased Convertible Senior Notes due 2017. 

In connection with our June 2015 purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of approximately $54.9 million, consisting of 2.3 million shares of Radian Group common stock and $12.0 million in cash. In accordance with the accounting standards regarding equity and contracts in an entity’s own equity, the total consideration received was recorded as an increase to additional paid-in capital. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares.

During the three-month period ended June 30, 2015, our closing stock price exceeded the thresholds required for the holders of our Convertible Senior Notes due 2017 and our Convertible Senior Notes due 2019 to be able to exercise their conversion rights during the three-month period ending September 30, 2015. In any period when holders of the Convertible Senior Notes due 2017 are eligible to exercise their conversion option, the equity component related to these instruments is classified as mezzanine (temporary) equity, because we are required to settle the aggregate principal amount of the notes in cash. If in any future period the conversion threshold requirements of our Convertible Senior Notes due 2017 are not met, then the difference between (1) the amount of cash deliverable upon conversion (i.e., par value of debt) and (2) the carrying value of the debt component will be reclassified from mezzanine equity to permanent equity, and will continue to be reported as permanent equity for any period in which the debt is not currently convertible. Our conversion obligation for the Convertible Senior Notes due 2019 may be satisfied by paying or delivering, as the case may be, cash, shares of Radian Group common stock or a combination of cash and shares of Radian Group common stock, at our election.

Issuance and transaction costs incurred at the time of the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of proceeds and are accounted for as debt issuance costs and equity issuance costs, respectively. The convertible notes are reflected on our condensed consolidated balance sheets as follows:

	Convertible Senior Notes due 2017						Convertible Senior Notes due 2019
(In thousands)	June 30, 2015			December 31, 2014			June 30, 2015			December 31, 2014
Liability component:
Principal	$	60,914		$	450,000		$	399,992		$	400,000
Debt discount, net (1)	(8,546		)	(74,690		)	(51,793		)	(57,989		)
Debt issuance costs (1)	(451		)	(3,974		)	(5,219		)	(5,878		)
Net carrying amount	$	51,917		$	371,336		$	342,980		$	336,133
Equity component of currently redeemable convertible senior notes	$	8,546		$	74,690		$	—		$	—

__________________

(1) Included within long-term debt and is being amortized over the life of the convertible notes.

The following tables set forth total interest expense recognized related to the convertible notes for the periods indicated:

	Convertible Senior Notes due 2017
	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2015		2014		2015		2014
Contractual interest expense	$	3,122	$	3,375	$	6,497	$	6,750
Amortization of debt issuance costs	298		304		616		604
Amortization of debt discount	5,394		5,312		11,102		10,498
Total interest expense	$	8,814	$	8,991	$	18,215	$	17,852

	Convertible Senior Notes due 2019
	Three Months Ended June 30,				Six Months Ended June 30,
($ in thousands)	2015		2014		2015		2014
Contractual interest expense	$	2,250	$	2,250	$	4,500	$	4,500
Amortization of debt issuance costs	330		319		658		635
Amortization of debt discount	3,123		2,934		6,196		5,823
Total interest expense	$	5,703	$	5,503	$	11,354	$	10,958

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Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2015	Aug. 04, 2015
Document Information [Line Items]
Entity Registrant Name	Radian Group Inc.
Entity Central Index Key	0000890926
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		208,660,500
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

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Note 11 - Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive (Loss) Income

The following table shows the rollforward of AOCI as of the periods indicated. During the second quarter of 2015, we sold equity securities in our portfolio and reinvested the proceeds in assets that qualify as PMIERs-compliant Available Assets, recognizing pretax gains of $68.7 million.

	Three Months Ended June 30, 2015										Six Months Ended June 30, 2015
(In thousands)	Before Tax			Tax Effect			Net of Tax				Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	91,806		$	32,132		$	59,674			$	79,208		$	27,723		$	51,485
OCI:
Net foreign currency translation adjustments	243			85			158				49			17			32
Unrealized gains (losses) on investments:
Unrealized holding losses arising during the period	(33,261		)	(11,641		)	(21,620		)		(23,332		)	(8,166		)	(15,166		)
Less: Reclassification adjustment for net gains included in net income (1)	68,714			24,050			44,664				68,663			24,032			44,631
Net unrealized losses on investments	(101,975		)	(35,691		)	(66,284		)		(91,995		)	(32,198		)	(59,797		)
Activity related to investments recorded as assets held for sale (2)	(7,818		)	(2,736		)	(5,082		)	(3)	(5,006		)	(1,752		)	(3,254		)
OCI	(109,550		)	(38,342		)	(71,208		)		(96,952		)	(33,933		)	(63,019		)
Balance at end of period	$	(17,744	)	$	(6,210	)	$	(11,534	)		$	(17,744	)	$	(6,210	)	$	(11,534	)
	Three Months Ended June 30, 2014										Six Months Ended June 30, 2014
(In thousands)	Before Tax			Tax Effect			Net of Tax				Before Tax			Tax Effect			Net of Tax
Balance at beginning of period	$	61,185		$	19,841		$	41,344			$	57,345		$	19,962		$	37,383
OCI:
Unrealized gains (losses) on investments:
Unrealized holding gains (losses) arising during the period	8,422			(211		)	8,633				11,092			(210		)	11,302
Less: Reclassification adjustment for net losses included in net income (1)	(604		)	(211		)	(393		)		(599		)	(210		)	(389		)
Net unrealized gains on investments	9,026			—			9,026				11,691			—			11,691
Activity related to investments recorded as assets held for sale (2)	646			(1		)	647				1,821			(122		)	1,943
OCI	9,672			(1		)	9,673				13,512			(122		)	13,634
Balance at end of period	$	70,857		$	19,840		$	51,017			$	70,857		$	19,840		$	51,017

_________________________

(1) Included in net gains on investments and other financial instruments on our condensed consolidated statements of operations.

(2) Represents the unrealized holding gains (losses) arising during the period on investments recorded as assets held for sale, net of reclassification adjustments for net gains (losses) included in net income from discontinued operations.

(3) For the three months ended June 30, 2015, this amount represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in AOCI.

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Premiums written—insurance:
Net premiums earned—insurance	$ 237,437	$ 203,646	$ 462,032	$ 402,408
Services revenue	43,503	0	74,133	0
Net investment income	19,285	16,663	36,613	31,981
Net gains on investments and other financial instruments	28,448	25,332	45,227	68,300
Other income	1,743	1,739	3,074	2,865
Total revenues	330,416	247,380	621,079	505,554
Expenses:
Provision for losses	32,560	64,648	77,588	114,274
Policy acquisition costs	6,963	6,746	14,713	13,763
Direct cost of services	23,520	0	42,773	0
Other operating expenses	67,731	60,751	121,505	115,258
Interest expense	24,501	22,348	48,886	42,275
Loss on extinguishment of debt (See Note 10)	91,876	0	91,876	0
Amortization and impairment of intangible assets	3,281	0	6,304	0
Total expenses	250,432	154,493	403,645	285,570
Pretax income from continuing operations	79,984	92,887	217,434	219,984
Income tax provision (benefit)	34,791	(10,650)	80,514	(29,533)
Net income from continuing operations	45,193	103,537	136,920	249,517
Income from discontinued operations, net of tax	4,855	71,296	5,385	128,075
Net income	$ 50,048	$ 174,833	$ 142,305	$ 377,592
Earnings Per Share, Basic [Abstract]
Net income from continuing operations	$ 0.23	$ 0.57	$ 0.71	$ 1.40
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share	0.03	0.39	0.03	0.72
Basic net income per share	0.26	0.96	0.74	2.12
Earnings Per Share, Diluted [Abstract]
Income (Loss) from Continuing Operations, Per Diluted Share	0.20	0.47	0.59	1.15
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share	0.02	0.31	0.02	0.56
Diluted net income per share	$ 0.22	$ 0.78	$ 0.61	$ 1.71
Weighted-average number of common shares outstanding—basic	193,112	182,583	192,245	177,903
Weighted-average number of common and common equivalent shares outstanding—diluted	246,650	230,779	244,981	226,767
Dividends per share	$ 0.0025	$ 0.0025	$ 0.0050	$ 0.0050

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Note 5 - Investments (Notes)

6 Months Ended

Jun. 30, 2015

Investments [Abstract]

Investments

Investments

Our available for sale securities within our investment portfolio consisted of the following as of the dates indicated:

	June 30, 2015
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	5,745	$	5,784	$	39	$	—
State and municipal obligations	17,668		18,476		810		2
Corporate bonds and notes	529,942		517,857		1,850		13,935
RMBS	158,134		156,532		513		2,115
CMBS	218,531		213,988		97		4,640
Other ABS	243,096		243,045		693		744
Foreign government and agency securities	23,330		23,160		186		356
	1,196,446		1,178,842		4,188		21,792
Equity securities available for sale	573		881		308		—
Total debt and equity securities	$	1,197,019	$	1,179,723	$	4,496	$	21,792

	December 31, 2014
(In thousands)	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
Fixed-maturities available for sale:
U.S. government and agency securities	$	5,709	$	5,751	$	48	$	6
State and municipal obligations	17,727		18,910		1,183		—
Corporate bonds and notes	277,678		284,408		7,288		558
RMBS	41,467		42,520		1,053		—
CMBS	57,358		58,234		876		—
Other ABS	109,420		107,701		8		1,727
Foreign government and agency securities	19,301		19,366		307		242
	528,660		536,890		10,763		2,533
Equity securities available for sale (1)	76,900		143,368		66,468		—
Total debt and equity securities	$	605,560	$	680,258	$	77,231	$	2,533

______________________

(1) Comprising broadly diversified domestic equity mutual funds ($143.0 million fair value) and a preferred stock investment in Freddie Mac ($0.4 million fair value).

The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of the dates indicated:

(In thousands)	June 30, 2015		December 31, 2014
Trading securities:
U.S. government and agency securities	$	131,335	$	134,530
State and municipal obligations	312,340		343,926
Corporate bonds and notes	660,964		708,361
RMBS	80,772		89,810
CMBS	169,443		188,615
Other ABS	30,952		77,755
Foreign government and agency securities	13,548		18,331
Equity securities	67,081		72,256
Total	$	1,466,435	$	1,633,584

For trading securities held at June 30, 2015 and December 31, 2014, we had net unrealized losses during the six months ended June 30, 2015 and unrealized gains during the year ended December 31, 2014 associated with those securities of $13.7 million and $65.7 million, respectively.

For the six months ended June 30, 2015, we did not transfer any securities from the available for sale or trading categories.

Net realized and unrealized gains (losses) on investments and other financial instruments consisted of:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Net realized gains (losses):
Fixed-maturities held to maturity	$	—		$	—		$	—		$	(9	)
Fixed-maturities available for sale	(8		)	(604		)	(59		)	(599		)
Equities available for sale	68,723			—			68,723			—
Trading securities	(8,291		)	(41		)	(12,859		)	(4,392		)
Short-term investments	4			—			4			—
Other	1			(63		)	106			(53		)
Net realized gains (losses) on investments	60,429			(708		)	55,915			(5,053		)
Unrealized (losses) gains on trading securities	(31,638		)	28,941			(10,937		)	76,572
Total net gains on investments	28,791			28,233			44,978			71,519
Net (losses) gains on other financial instruments	(343		)	(2,901		)	249			(3,219		)
Net gains on investments and other financial instruments	$	28,448		$	25,332		$	45,227		$	68,300

The following tables show the gross unrealized losses and fair value of our securities deemed “available for sale” aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:

June 30, 2015: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
State and municipal obligations	1	$	5,727	$	2	—	$	—	$	—	1	$	5,727	$	2
Corporate bonds and notes	95	408,203		13,528		7	10,172		407		102	418,375		13,935
RMBS	9	116,631		2,115		—	—		—		9	116,631		2,115
CMBS	30	195,913		4,640		—	—		—		30	195,913		4,640
Other ABS	28	114,059		273		10	39,860		471		38	153,919		744
Foreign government and agency securities	11	10,971		340		1	183		16		12	11,154		356
Total	174	$	851,504	$	20,898	18	$	50,215	$	894	192	$	901,719	$	21,792

December 31, 2014: ($ in thousands) Description of Securities	Less Than 12 Months					12 Months or Greater					Total
	# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses		# of securities	Fair Value		Unrealized Losses
U.S. government and agency securities	—	$	—	$	—	1	$	3,455	$	6	1	$	3,455	$	6
Corporate bonds and notes	24	40,917		410		1	1,027		148		25	41,944		558
Other ABS	34	97,356		1,727		—	—		—		34	97,356		1,727
Foreign government and agency securities	4	6,353		242		—	—		—		4	6,353		242
Total	62	$	144,626	$	2,379	2	$	4,482	$	154	64	$	149,108	$	2,533

During the first six months of 2015 and 2014, we did not recognize in earnings any impairment losses related to credit deterioration.

Although we held securities in an unrealized loss position as of June 30, 2015, we did not consider them to be other-than-temporarily impaired as of such date. For all investment categories, the unrealized losses of 12 months or greater duration as of June 30, 2015, were generally caused by interest rate or credit spread movements since the purchase date. As of June 30, 2015, we estimated that the present value of cash flows expected to be collected from these securities would be sufficient to recover the amortized cost basis of these securities. As of June 30, 2015, we did not have the intent to sell any debt securities in an unrealized loss position, and we determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis, which may be at maturity; therefore, we did not consider these investments to be other-than-temporarily impaired at June 30, 2015.

The contractual maturities of fixed-maturity investments are as follows:

	June 30, 2015
	Available for Sale
(In thousands)	Amortized Cost		Fair Value
Due in one year or less (1)	$	7,381	$	7,399
Due after one year through five years (1)	51,208		51,265
Due after five years through ten years (1)	345,233		340,126
Due after ten years (1)	172,863		166,487
RMBS (2)	158,134		156,532
CMBS (2)	218,531		213,988
Other ABS (2)	243,096		243,045
Total	$	1,196,446	$	1,178,842

______________________

(1) Actual maturities may differ as a result of calls before scheduled maturity.

(2) RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date.

At June 30, 2015 and December 31, 2014, Radian Guaranty had $210.3 million and $209.3 million, respectively, in a collateral account pursuant to the Freddie Mac Agreement. These investments, which are primarily invested in trading securities, are pledged to cover Loss Mitigation Activity on the loans subject to that agreement. Subject to certain conditions in the Freddie Mac Agreement, amounts in the collateral account may be released to Radian Guaranty over time to the extent that Loss Mitigation Activity becomes final in accordance with the terms of the Freddie Mac Agreement. However, if the amount of Loss Mitigation Activity that becomes final in accordance with the Freddie Mac Agreement is less than $205 million prior to August 29, 2017, then any shortfall will be paid on that date to Freddie Mac from the funds remaining in the collateral account, subject to certain adjustments designed to allow for any Loss Mitigation Activity that has not become final or any claims evaluation that has not been completed as of that date. From the time the collateral account was established through June 30, 2015, approximately $128 million of Loss Mitigation Activity had become final in accordance with the Freddie Mac Agreement and approximately $13 million of submitted claims had been rescinded, denied, curtailed or cancelled, but were not yet considered final in accordance with the Freddie Mac Agreement.

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Note 4 - Fair Value of Financial Instruments (Notes)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Available for sale securities, trading securities and certain other assets are recorded at fair value. All changes in the fair value of trading securities and certain other assets are included in our condensed consolidated statements of operations. All changes in the fair value of available for sale securities are recorded in AOCI. There were no significant changes to our fair value methodologies during the six months ended June 30, 2015.

In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below:

Level I —    Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level II —    Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and

Level III —    Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available.

The level of market activity used to determine the fair value hierarchy is based on the availability of observable inputs market participants would use to price an asset or a liability, including market value price observations. We provide a qualitative description of the valuation techniques and inputs used for Level II recurring and non-recurring fair value measurements in our audited annual financial statements as of December 31, 2014. For a complete understanding of those valuation techniques and inputs used as of June 30, 2015, these unaudited condensed consolidated financial statements should be read in conjunction with the audited annual financial statements and notes thereto included in our 2014 Form 10-K.

The following is a list of those assets that are measured at fair value by hierarchy level as of June 30, 2015:

(In millions)	Level I		Level II		Level III		Total
Assets at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	598.3	$	—	$	—	$	598.3
State and municipal obligations	—		330.8		—		330.8
Money market instruments	828.1		—		—		828.1
Corporate bonds and notes	—		1,321.7		—		1,321.7
RMBS	—		237.3		—		237.3
CMBS	—		383.4		—		383.4
Other ABS	—		274.0		—		274.0
Foreign government and agency securities	—		36.7		—		36.7
Equity securities	21.1		46.4		0.5		68.0
Other investments (1)	—		217.2		—		217.2
Total Investments at Fair Value (2)	1,447.5		2,847.5		0.5		4,295.5
Total Assets at Fair Value	$	1,447.5	$	2,847.5	$	0.5	$	4,295.5

______________________

(1) Comprising short-term certificates of deposit ($1.0 million) and short-term commercial paper ($216.2 million) included within Level II.

(2) Does not include certain other invested assets ($13.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.

At June 30, 2015, total Level III assets of $0.5 million accounted for less than 0.1% of total assets measured at fair value. This investment was purchased during the three months ended June 30, 2015, and there were no related gains or losses recorded during the quarter. There were no Level III liabilities.

The following is a list of those assets that are measured at fair value by hierarchy level as of December 31, 2014:

(In millions)	Level I		Level II		Total
Assets at Fair Value
Investment Portfolio:
U.S. government and agency securities	$	836.9	$	3.0	$	839.9
State and municipal obligations	—		362.8		362.8
Money market instruments	600.3		—		600.3
Corporate bonds and notes	—		992.8		992.8
RMBS	—		132.3		132.3
CMBS	—		246.8		246.8
Other ABS	—		185.5		185.5
Foreign government and agency securities	—		37.7		37.7
Equity securities (1)	164.0		51.6		215.6
Other investments (2)	—		1.0		1.0
Total Investments at Fair Value (3)	1,601.2		2,013.5		3,614.7
Total Assets at Fair Value	$	1,601.2	$	2,013.5	$	3,614.7

______________________

(1) Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and various preferred stocks invested across numerous companies and industries included within Level II.

(2) Comprising short-term certificates of deposit.

(3) Does not include certain other invested assets ($14.6 million), primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value. Also excludes investments classified as assets held for sale of $495.1 million, $839.2 million and $102.6 million, with fair values categorized in Level I, Level II and Level III, respectively.

At December 31, 2014, there were no Level III assets other than those classified as assets held for sale, and total Level III liabilities of $3.8 million accounted for 100% of total liabilities measured at fair value.

There were no transfers between Level I and Level II for the three and six months ended June 30, 2015 or 2014. There were also no transfers involving Level III assets or liabilities for the three and six months ended June 30, 2015. For both the three and six months ended June 30, 2014, there were $17.3 million of other ABS securities transferred from Level II to Level III as the pricing inputs were no longer considered observable. During the three months ended September 30, 2014, all of our other ABS securities were transferred from Level III to Level II, as third-party pricing became available.

Other Fair Value Disclosure

The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our condensed consolidated balance sheets were as follows as of the dates indicated:

	June 30, 2015					December 31, 2014
(In millions)	Carrying Amount		Estimated Fair Value			Carrying Amount		Estimated Fair Value
Assets:
Other invested assets	$	13.6	$	21.0	(1)	$	14.6	$	20.5	(1)
Liabilities:
Long-term debt	1,224.9		1,681.0		(1)	1,192.3		1,859.3		(1)

______________________

(1) These estimated fair values would be classified in Level II of the fair value hierarchy.

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Note 16 - Capital Stock (Notes)

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Capital Stock

In June 2015, we entered into privately negotiated agreements with certain of the holders of our Convertible Senior Notes due 2017 to purchase an aggregate principal amount of $389.1 million of our outstanding Convertible Senior Notes due 2017 for a combination of cash and shares of Radian Group common stock. We funded the purchases with $126.8 million in cash (plus accrued and unpaid interest due on the purchased notes) and by issuing to the sellers approximately 28.4 million shares of Radian Group common stock. In connection with our purchases of Convertible Senior Notes due 2017, we terminated a corresponding portion of the capped call transactions we had entered into in 2010 related to the initial issuance of the Convertible Senior Notes due 2017. As a result of this termination, we received total consideration of approximately $54.9 million, consisting of 2.3 million shares of Radian Group common stock and $12.0 million in cash. The shares of Radian Group common stock received were retired, resulting in a decrease in shares issued and outstanding and a corresponding increase in unissued shares.

On June 18, 2015, we reported that our board of directors had authorized an ASR program to repurchase an aggregate of approximately $202 million of Radian Group common stock. During the three-month period ended June 30, 2015, 9.2 million initial shares were repurchased under this program. All share repurchases made to date were funded from the proceeds of the Senior Notes due 2020.

Under the ASR program, the total number of shares ultimately delivered to Radian Group will be based on the average of the daily volume-weighted average price of Radian Group common stock during the term of the transaction, less a negotiated discount and subject to certain other adjustments pursuant to the terms and conditions of the program. If the adjusted average price of Radian Group common stock during the term of the transaction is higher than the initial repurchase price, Radian Group may be required to make an adjustment payment, which it may make, at its election, in cash or in shares of Radian Group common stock. If an adjustment payment is required from the counterparty, the counterparty may be required to deliver to Radian Group additional shares of Radian Group common stock or, at our election under certain circumstances, a combination of Radian Group common stock and cash. Final settlement of the ASR program is expected to occur in October 2015, and may occur earlier at the option of the counterparty to the agreement.

We also may purchase shares on the open market to meet option exercise obligations and to fund 401(k) matches and purchases under our ESPP.

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Note 12 - Income Taxes (Notes)

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our DTAs and DTLs are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our condensed consolidated financial statements and the tax bases of these amounts. DTAs and DTLs are measured using the enacted tax rates expected to apply to taxable income in the periods in which the DTA or DTL is expected to be realized or settled.

Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for continuing operations for the full year. When estimating our full year 2015 and 2014 annual effective tax rate, we accounted for the tax effects of gains and losses on our investments, changes as a result of the accounting standard regarding the accounting for uncertainty in income taxes, and other adjustments discretely at the federal applicable tax rate. Our effective tax rate as of June 30, 2014 was also impacted by our full valuation allowance against our DTAs.

Our June 2015 purchases of Convertible Senior Notes due 2017 resulted in a pretax charge in the Statements of Operations of approximately $91.9 million in the second quarter of 2015. This included approximately $35.5 million of market premium related to the purchases of which approximately $28.9 million is estimated to be non-deductible for tax purposes and impacted our effective tax rate. Overall, we recorded an income tax benefit in the Statements of Operations of approximately $22.0 million related to these purchases as of June 30, 2015.

For federal income tax purposes, we had approximately $1.3 billion of NOL carryforwards and $6.0 million of foreign tax credit carryforwards as of June 30, 2015. To the extent not utilized, the NOL carryforwards will expire during tax years 2028 through 2032 and the foreign tax credit carryforwards will expire during tax years 2018 through 2020. Certain entities within our consolidated group have also generated DTAs of approximately $35.5 million relating to state and local NOL carryforwards, which if unutilized, will expire during various future tax periods.

We are required to establish a valuation allowance against our DTAs when it is more likely than not that all or some portion of our DTAs will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our DTAs will be realized in future periods. In making this assessment as of June 30, 2015, we determined that certain state and local NOLs, relating to non-insurance entities within our consolidated group, may not be realized during their appropriate carryforward period. Therefore, we have recorded a valuation allowance of approximately $21.5 million relating to these state and local NOL DTAs as of June 30, 2015.

As previously disclosed, we are contesting adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal income tax returns. The IRS opposes the recognition of certain tax losses and deductions that were generated through our investment in a portfolio of non-economic REMIC residual interests and proposed adjustments denying the associated tax benefits of these items. We appealed these proposed adjustments to Appeals and made “qualified deposits” with the U.S. Treasury of approximately$85 millionin June 2008 relating to the 2000 through 2004 tax years and approximately$4 millionin May 2010 relating to the 2005 through 2007 tax years in order to avoid the accrual of above-market-rate interest with respect to the proposed adjustments.

We made several attempts to reach a compromised settlement with Appeals, but in January 2013, we were notified that Appeals had rejected our latest settlement offer and planned to issue formal Notices of Deficiency related to certain losses and deductions resulting from our investment in the portfolio of non-economic REMIC residual interests, as discussed above.On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties of approximately$157 million. The Deficiency Amount has not been reduced to reflect our NOL carryback ability.As of June 30, 2015, there also would be interest of approximately$120 millionrelated to these matters. Depending on the outcome, additional state income taxes, penalties and interest (estimated in the aggregate to be approximately$31 millionas of June 30, 2015) also may become due when a final resolution is reached. The Notices of Deficiency also reflected additional amounts due of approximately$105 million, which are primarily associated with the disallowance of the previously filed carryback of our 2008 NOL to the 2006 and 2007 tax years. We believe that the disallowance of our 2008 NOL carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL carryback claim.

On December 3, 2014, we petitioned the U.S. Tax Court to litigate the Deficiency Amount. The litigation could take several years to resolve and may result in substantial legal expenses. We can provide no assurance regarding the outcome of any such litigation or whether a compromised settlement with the IRS will ultimately be reached. We believe that an adequate provision for income taxes has been made for the potential liabilities that may result from this matter. However, if the ultimate resolution of this matter produces a result that differs materially from our current expectations, there could be a material impact on our effective tax rate, results of operations and cash flows.

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Note 8. Other Assets (Notes)

6 Months Ended

Jun. 30, 2015

Other Assets [Abstract]

Other Assets Disclosure [Text Block]

Other Assets

The following table shows the components of other assets for the periods indicated:

(In thousands)	June 30, 2015		December 31, 2014
Deposit with the IRS (Note 12)	$	88,557	$	88,557
Corporate-owned life insurance	81,998		80,755
Prepaid reinsurance premiums	47,835		57,291
Property and equipment (1)	35,380		27,248
Accrued investment income	24,475		20,022
Reinsurance recoverables	13,227		28,119
Deferred policy acquisition costs	9,866		12,003
Other	48,033		43,869
Total other assets	$	349,371	$	357,864

______________________

(1) Property and equipment, at cost less accumulated depreciation of $103.3 million and $100.2 million at June 30, 2015 and December 31, 2014, respectively.

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Note 9 - Losses and LAE Rescissions And Denials (Details) - Mortgage Insurance Segment - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Claims Rescissions and Denials [Abstract]
Rescissions, Net of Reinstatements		$ 3.4	$ 7.6	$ 7.2	$ 14.0
Claim Denials, Net of Reinstatements		3.6	6.4	9.2	25.3
Rescissions and Claim Denials Related to Settlement Agreement, Net of Reinstatements		(47.1)	(2.5)	(71.2)	0.5
Claim Rescissions And Denials, Net of Reinstatements	[1]	(40.1)	$ 11.5	(54.8)	$ 39.8
Decrease To Our Loss Reserves Due To Estimated Rescissions And Denials		108.0		108.0		$ 125.0
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount		66.7		66.7		163.6
Gross Exposure Related to Denied Claims From Previous Twelve Months				65.1
Gross Exposure Related to Rescinded Policies Within Twenty Four Months				67.2
Net Exposure Related to Claim Curtailments Within Twenty Four Months				28.3
Accrued Liability For Premiums Expected To Be Refunded From Rescissions		8.1		8.1		9.0
Claims Denied in the Last Twelve Months [Member]
Claims Rescissions and Denials [Abstract]
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount		10.8		10.8
Curtailed Claim Payments in the Last Twenty Four Months [Member]
Claims Rescissions and Denials [Abstract]
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount		2.2		2.2
Policies Rescinded in the Last Twenty Four Months [Member]
Claims Rescissions and Denials [Abstract]
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount		0.6		0.6
Bank of America Settlement Agreement [Member]
Claims Rescissions and Denials [Abstract]
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred but Not Reported (IBNR) Claims, Amount		$ 46.9		$ 46.9		$ 133.0
Loss Contingency, Settlement Agreement, Percentage of Subject Loans Not Held by Insureds or Are Non-GSE Investors		12.00%		12.00%

[1] Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured.

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Note 6 - Goodwill and Other Intangible Assets, Net (Notes)

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

Goodwill and Other Intangible Assets, Net

The following table shows the changes in the carrying amount of goodwill, all of which relates to our Services segment, as of and for the year-to-date periods ended June 30, 2015 and December 31, 2014:

(In thousands)	Goodwill		Accumulated Impairment Losses			Net
Balance at December 31, 2013	$	2,095	$	—		$	2,095
Goodwill acquired	191,932		—			191,932
Impairment losses	—		(2,095		)	(2,095		)
Balance at December 31, 2014	194,027		(2,095		)	191,932
Goodwill acquired	2,388		—			2,388
Impairment losses	—		—			—
Balance at June 30, 2015	$	196,415	$	(2,095	)	$	194,320

During the first quarter of 2015, Clayton further expanded its service offerings by acquiring Red Bell, a real estate brokerage company that provides products and services that include automated valuation models; broker price opinions used by investors, lenders and loan servicers; and advanced technology solutions for: (1) monitoring loan portfolio performance; (2) tracking non-performing loans; (3) managing REO assets; and (4) valuing and selling residential real estate through a secure platform. The acquisition did not meet the criteria to be considered a material business combination. The transaction was treated as a purchase for accounting purposes, with the excess of the acquisition price over the estimated fair value of the net assets acquired resulting in goodwill of $2.4 million. The goodwill represents the estimated future economic benefits arising from the assets acquired that did not qualify to be identified and recognized individually, and includes the value of the discounted expected future cash flows, the workforce, expected synergies with our other affiliates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review for impairment annually, or more frequently, whenever circumstances indicate potential impairment. Our goodwill balance at June 30, 2015 relates entirely to our Services segment, as a result of our acquisition of Clayton and its subsequent acquisition of Red Bell.

The following is a summary of the gross and net carrying amounts and accumulated amortization of our other intangible assets as of and for the year-to-date periods indicated:

	As of June 30, 2015
(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	$	83,072	$	(6,939	)	$	76,133
Technology	10,940		(1,741		)	9,199
Trademark	8,300		(807		)	7,493
Client backlog	6,680		(3,295		)	3,385
Non-competition agreements	185		(75		)	110
Total	$	109,177	$	(12,857	)	$	96,320
	As of December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Client relationships	$	79,203	$	(2,917	)	$	76,286
Technology	8,970		(797		)	8,173
Trademark	7,860		(393		)	7,467
Client backlog	6,680		(2,406		)	4,274
Non-competition agreements	145		(37		)	108
Total	$	102,858	$	(6,550	)	$	96,308

The estimated aggregate amortization expense for the remainder of 2015 and thereafter is as follows (in thousands):

2015	$	6,548
2016	12,559
2017	11,918
2018	11,286
2019	10,050
2020	8,497
Thereafter	35,462

For tax purposes, substantially all of our goodwill and other intangible assets are expected to be deductible and will be amortized over a period of 15 years.

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Note 7 - Reinsurance

6 Months Ended

Jun. 30, 2015

Reinsurance Disclosures [Abstract]

Reinsurance

Reinsurance

The effect of reinsurance on net premiums written and earned is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Net premiums written-insurance:
Direct	$	258,198		$	238,590		$	513,446		$	467,859
Assumed	8			10			55			20
Ceded	(7,124		)	(16,653		)	(20,511		)	(32,979		)
Net premiums written-insurance	$	251,082		$	221,947		$	492,990		$	434,900
Net premiums earned-insurance:
Direct	$	249,797		$	221,171		$	491,961		$	437,047
Assumed	10			12			23			24
Ceded	(12,370		)	(17,537		)	(29,952		)	(34,663		)
Net premiums earned-insurance	$	237,437		$	203,646		$	462,032		$	402,408

In 2012, Radian Guaranty entered into two separate QSR agreements with a third-party reinsurance provider. As of June 30, 2015, RIF ceded under the Initial QSR Transaction and the Second QSR Transaction was approximately $1.0 billion and $1.4 billion, respectively.

The Second QSR Transaction provides that, effective December 31, 2015, Radian Guaranty will have the ability, at its option, to recapture half of the reinsurance ceded with respect to conventional GSE loans, which would result in Radian Guaranty reassuming the related RIF potentially in exchange for a payment of a profit commission amount from the reinsurer. Our results for the three and six months ended June 30, 2015 include an accrual of $5.8 million for this potential profit commission, based on experience to date for the Second QSR Transaction and our current expectation to exercise our option to recapture ceded RIF.

The following tables show the amounts related to the QSR Transactions for the periods indicated:

	Initial QSR Transaction
	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Ceded premiums written	$	3,822	$	5,046	$	7,889	$	10,350
Ceded premiums earned	6,424		6,803		12,442		13,610
Ceding commissions written	828		1,262		1,708		2,588

	Second QSR Transaction
	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Ceded premiums written	$	395	$	8,072	$	6,924	$	15,365
Ceded premiums earned	3,039		7,197		11,807		13,782
Ceding commissions written	2,154		2,825		4,439		5,378

Radian Guaranty has ceded the maximum amount permitted under the QSR Transactions (up to $1.6 billion of ceded RIF for each); therefore, Radian Guaranty is no longer ceding NIW under these transactions. Effective January 1, 2015, the ceding commission was reduced from 25% to 20% for two-thirds of the reinsurance ceded under the Initial QSR Transaction. Ceded losses to date under the QSR Transactions have been immaterial.

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Note 9 - Losses and LAE (Notes)

6 Months Ended

Jun. 30, 2015

Insurance Loss Reserves [Abstract]

Losses and LAE

Losses and Loss Adjustment Expense

All of the balance and activity of our consolidated reserve for losses and loss adjustment expense relate to the Mortgage Insurance segment. The following table shows our reserve for losses and LAE by category at the end of each period indicated:

(In thousands)	June 30, 2015		December 31, 2014
Reserve for losses by category:
Prime	$	562,918	$	700,174
Alt-A	256,854		292,293
A minus and below	148,043		179,103
IBNR and other	125,038		223,114
LAE	48,141		56,164
Reinsurance recoverable (1)	11,677		26,665
Total primary reserve	1,152,671		1,477,513
Pool	47,902		75,785
IBNR and other	891		1,775
LAE	2,353		3,542
Total pool reserve	51,146		81,102
Total First-lien reserve	1,203,817		1,558,615
Second-lien and other (2)	975		1,417
Total reserve for losses	$	1,204,792	$	1,560,032

______________________

(1) Primarily represents ceded losses on captive transactions and the QSR Transactions.

(2) Does not include our Second-lien PDR that is included in other liabilities.

The following table presents information relating to our reserve for losses, including our IBNR reserve and LAE but excluding Second-lien PDR, for the periods indicated:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Balance at beginning of period	$	1,384,714		$	1,893,960		$	1,560,032		$	2,164,353
Less reinsurance recoverables (1)	13,365			25,751			26,665			38,363
Balance at beginning of period, net of reinsurance recoverables	1,371,349			1,868,209			1,533,367			2,125,990
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2) (3)	53,617			75,472			134,054			184,321
Prior years (3)	(19,835		)	(11,207		)	(55,195		)	(70,896		)
Total incurred	33,782			64,265			78,859			113,425
Deduct paid claims and LAE related to:
Current year (2)	576			803			576			803
Prior years	211,440			239,448			418,535			546,389
Total paid	212,016			240,251			419,111			547,192
Balance at end of period, net of reinsurance recoverables	1,193,115			1,692,223			1,193,115			1,692,223
Add reinsurance recoverables (1)	11,677			22,458			11,677			22,458
Balance at end of period	$	1,204,792		$	1,714,681		$	1,204,792		$	1,714,681

_________________________

(1) Related to ceded losses on captive reinsurance transactions and the QSR Transactions. See Note 7 for additional information.

(2) Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.

(3) Amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year and prior years have been reclassified to correct an error. There was no net change to total incurred losses in any period as a result of these reclassifications. For the three and six months ended June 30, 2014, the amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year have been revised downward by approximately $14.4 million and $48.2 million, respectively, with an equal and offsetting adjustment to the amount previously reported for default notices reported and unreported in prior years. For the years ended December 31, 2014, 2013 and 2012, the amounts previously reported related to losses and LAE incurred from current year default notices should have been lower by approximately $71.8 million, $65.0 million and $75.7 million, respectively, with equal and offsetting adjustments to the incurred loss amounts related to prior years’ default notices.

Our loss reserve declined for the three and six months ended June 30, 2015, primarily as a result of the aggregate volume of paid claims, Cures, Rescissions and Claim Denials exceeding new default notices received. Reserves established for new default notices were the primary driver of our total incurred loss for the first six months of 2015. The impact to incurred losses from default notices reported in 2015 was partially mitigated by favorable reserve development on prior year defaults, which was driven primarily by a reduction in certain Default to Claim Rate assumptions based on observed trends of higher Cures than were previously estimated. We experienced similar favorable development related to incurred losses from prior year defaults during the first six months of 2014. Our results for the six months ended June 30, 2015 also include the impact of the BofA Settlement Agreement, as described below.

Total paid claims decreased for the three months ended June 30, 2015 compared to the comparable period in 2014, primarily due to the overall decline in defaulted loans and the ongoing reduction in pending claims. Claims paid for the six months ended June 30, 2015 include $174.6 million related to the implementation of the BofA Settlement Agreement.

Our aggregate weighted average Default to Claim Rate assumption (net of Claim Denials and Rescissions) used in estimating our primary reserve for losses declined slightly to 50% (45% excluding pending claims) at June 30, 2015, compared to 52% at December 31, 2014. The change in our Default to Claim Rate resulted primarily from a decrease in the proportion of pending claims, which have higher Default to Claim Rates, and a decrease in the assumed Default to Claim Rate for new defaults, as described below. We develop our Default to Claim Rate estimates on defaulted loans based on models that use a variety of loan characteristics to determine the likelihood that a default will reach claim status. Our Default to Claim Rate estimates on defaulted loans are mainly developed based on the Stage of Default and Time in Default of the underlying defaulted loans, as measured by the progress toward foreclosure sale and the number of months in default. During the six months ended June 30, 2015, we reduced our gross Default to Claim Rate assumption for new primary defaults from 16% to 14% due tocontinued improvement in actual claim development trends.As of June 30, 2015, our gross Default to Claim Rates on our primary portfolio ranged from 14% for new defaults, to approximately 65% for defaults not in Foreclosure Stage, and 81% for Foreclosure Stage Defaults. Our estimate of expected Rescissions and Claim Denials (net of expected Reinstatements) embedded in our Default to Claim Rate is generally based on our experience over the past year, with consideration given for differences in characteristics between those rescinded policies and denied claims and the loans remaining in our defaulted inventory, as well as the estimated impact of the BofA Settlement Agreement.

The following table illustrates the amount of First-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of any Reinstatements of previous Rescissions or Claim Denials within each period. Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement represent such activities, prior to the February 1, 2015 Implementation Date, on loans that subsequently became subject to the BofA Settlement Agreement.

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2015			2014			2015			2014
Rescissions, net	$	3.4		$	7.6		$	7.2		$	14.0
Claim Denials, net	3.6			6.4			9.2			25.3
Net (Reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement	(47.1		)	(2.5		)	(71.2		)	0.5
Net First-lien claims submitted for payment that were (reinstated), rescinded or denied (1)	$	(40.1	)	$	11.5		$	(54.8	)	$	39.8

______________________

(1) Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured.

Although our estimates of future Rescissions and Claim Denials have been declining, they remain elevated compared to levels experienced before 2009. The elevated levels of our rate of Rescissions and Claim Denials have reduced our paid losses and have resulted in a reduction in our loss reserve. Our estimate of net future Rescissions and Claim Denials reduced our loss reserve as of June 30, 2015 and December 31, 2014 by approximately $108 million and $125 million, respectively. The amount of estimated Rescissions and Claim Denials incorporated into our reserve analysis at any point in time is affected by a number of factors, including not only our estimated rate of Rescissions and Claim Denials on future claims, but also the volume and attributes of our defaulted insured loans, our estimated Default to Claim Rate and our estimated Claim Severity, among other assumptions. As of June 30, 2015, these assumptions also reflect the estimated impact of the BofA Settlement Agreement, as further discussed below.

As our Legacy Portfolio has become a smaller percentage of our overall insured portfolio, we have undertaken a reduced amount of Loss Mitigation Activity with respect to the claims we receive, and we expect this trend to continue. As a result, our future Loss Mitigation Activity is not expected to mitigate our paid losses to the same extent as in recent years.

Our reported Rescission and Claim Denial activity in any given period is subject to challenge by our lender and servicer customers. We expect that a portion of previous Rescissions will be reinstated and previous Claim Denials will be resubmitted with the required documentation and ultimately paid; therefore, we have incorporated this expectation into our IBNR reserve estimate. Our IBNR reserve estimate was $66.7 million and $163.6 million at June 30, 2015 and December 31, 2014, respectively. As of June 30, 2015, the IBNR reserve estimate of $66.7 million included approximately $46.9 million for loans subject to the BofA Settlement Agreement. This amount compares to approximately $133.0 million in IBNR reserves for loans subject to the BofA Settlement Agreement as of December 31, 2014. The significant decrease in our IBNR reserve estimate at June 30, 2015 as compared to December 31, 2014, reflects the implementation of the BofA Settlement Agreement that commenced on February 1, 2015, including the reinstatement and payment during the period of certain previous Rescissions and Claim Denials.

The remaining IBNR reserve estimate as of June 30, 2015 included an estimate of future Reinstatements of previous Claim Denials, Rescissions and Claim Curtailments of $10.8 million, $0.6 million, and $2.2 million, respectively. These reserves relate to approximately $65.1 million of claims that were denied within the preceding 12 months, approximately $67.2 million of policies rescinded within the preceding 24 months, and approximately $28.3 million of Claim Curtailments within the preceding 24 months.

We also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated Rescission activity. Our accrued liability for such refunds, which is included within other liabilities on our condensed consolidated balance sheets, was $8.1 million and $9.0 million as of June 30, 2015 and December 31, 2014, respectively.

BofA Settlement Agreement

On September 16, 2014, Radian Guaranty entered into a Confidential Settlement Agreement and Release (the “BofA Settlement Agreement”) with Countrywide Home Loans, Inc. and Bank of America, N.A. (together, the “Insureds”), as a successor to BofA Home Loan Servicing f/k/a Countrywide Home Loans Servicing LP, in order to resolve various actual and potential claims or disputes related to the parties’ respective rights and duties as to mortgage insurance coverage on certain Subject Loans.

Implementation of the BofA Settlement Agreement commenced on February 1, 2015 for Subject Loans held in portfolio by the Insureds or purchased by the GSEs as of that date. Approximately 12% of the Subject Loans are neither held in portfolio by the Insureds nor owned by the GSEs, and require the consent of certain other investors for these loans to be included in the BofA Settlement Agreement, except with respect to certain limited rights of cancellation. While we can provide no assurance whether one or more of the other investors will consent to have their Subject Loans included in the settlement, for purposes of the reserve established for the BofA Settlement Agreement we have assumed that these investors will provide consent. The deadline for such consent has been extended to August 15, 2015. To the extent that one or more of the other investors do not consent to the settlement, the associated Loss Mitigation Activities would not be reinstated under the terms of the BofA Settlement Agreement and the portion of the reserve related to such non-consenting investors would be reversed. See Note 10 of Notes to Consolidated Financial Statements in our 2014 Form 10-K for additional information about the BofA Settlement Agreement.

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Note 11 - Accumulated Other Comprehensive Income Rollforward of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended
		Jun. 30, 2015		Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accumulated Other Comprehensive Income [Line Items]
Accumulated Other Comprehensive Income, Net of Tax, beginning balance					$ 51,485
Other Comprehensive Income, Net of Tax [Abstract]
Net foreign currency translation adjustments		$ 158		$ 0	32	$ 0
Unrealized holding (losses) gains arising during the period		(21,620)		8,633	(15,166)	11,302
Less: Reclassification adjustment for net gains (losses) included in net income		44,664		(393)	44,631	(389)
Net unrealized gains on investments recorded as assets held for sale		(5,082)		647	(3,254)	1,943
Other comprehensive income		(71,208)		9,673	(63,019)	13,634
Other Comprehensive Income (Loss), Net of Tax, Unrealized Gains (Losses) on Investments Continuing Operations		(66,284)		9,026	(59,797)	11,691
Accumulated Other Comprehensive Income, Net of Tax, ending balance		(11,534)			(11,534)
Other Comprehensive Income
Accumulated Other Comprehensive Income [Line Items]
Accumulated Other Comprehensive Income, before Tax, beginning balance		91,806		61,185	79,208	57,345
Accumulated Other Comprehensive Income, Tax, beginning balance		32,132		19,841	27,723	19,962
Accumulated Other Comprehensive Income, Net of Tax, beginning balance		59,674		41,344	51,485	37,383
Other Comprehensive Income, before Tax [Abstract]
Net foreign currency translation adjustments, before tax		243			49
Unrealized holding (losses) gains arising during the period, before tax		(33,261)		8,422	(23,332)	11,092
Less: Reclassification adjustment for net (losses) gains included in net income, before tax	[1]	68,714		(604)	68,663	(599)
Other Comprehensive Income (Loss), Before Tax, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale	[2]	(7,818)		646	(5,006)	1,821
Other comprehensive income, before tax		(109,550)		9,672	(96,952)	13,512
Other Comprehensive Income, Tax [Abstract]
Net foreign currency translation adjustments, tax		85			17
Unrealized holding (losses) gains arising during the period, tax		(11,641)		(211)	(8,166)	(210)
Less: Reclassification adjustment for net (losses) gains included in net income, tax	[1]	24,050		(211)	24,032	(210)
Other Comprehensive Income (Loss), Tax Effect, Unrealized Gains (Losses) on Investments Recorded as Assets Held for Sale	[2]	(2,736)		(1)	(1,752)	(122)
Other Comprehensive Income, Tax		(38,342)		(1)	(33,933)	(122)
Other Comprehensive Income, Net of Tax [Abstract]
Net foreign currency translation adjustments		158			32
Unrealized holding (losses) gains arising during the period		(21,620)		8,633	(15,166)	11,302
Less: Reclassification adjustment for net gains (losses) included in net income	[1]	44,664		(393)	44,631	(389)
Net unrealized gains on investments recorded as assets held for sale	[2]	(5,082)	[3]	647	(3,254)	1,943
Other comprehensive income		(71,208)		9,673	(63,019)	13,634
Other Comprehensive Income (Loss), Before Tax, Unrealized Gains Losses on Investments Continuing Operations		(101,975)		9,026	(91,995)	11,691
Other Comprehensive Income (Loss), Tax Effect, Unrealized Gains (Losses) on Investments Continuing Operations		(35,691)		0	(32,198)	0
Other Comprehensive Income (Loss), Net of Tax, Unrealized Gains (Losses) on Investments Continuing Operations		(66,284)		9,026	(59,797)	11,691
Accumulated Other Comprehensive Income, before Tax, ending balance		(17,744)		70,857	(17,744)	70,857
Accumulated Other Comprehensive Income, Tax, ending balance		(6,210)		19,840	(6,210)	19,840
Accumulated Other Comprehensive Income, Net of Tax, ending balance		$ (11,534)		$ 51,017	$ (11,534)	$ 51,017

[1] Included in net gains on investments and other financial instruments on our condensed consolidated statements of operations.

[2] Represents the unrealized holding gains (losses) arising during the period on investments recorded as assets held for sale, net of reclassification adjustments for net gains (losses) included in net income from discontinued operations.

[3] For the three months ended June 30, 2015, this amount represents the recognition of investment gains included in income from discontinued operations, net of tax, as a result of the completion of the sale of Radian Asset Assurance on April 1, 2015. Previously, pursuant to accounting standards, such investment gains had been deferred and recorded in AOCI.

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Note 12 - Income Taxes Summary of Income Tax Examinations (Details) - Internal Revenue Service (IRS) [Member] - USD ($) $ in Millions	Jun. 30, 2015	Sep. 04, 2014	May. 03, 2010	Jun. 30, 2008
Income Tax Examination [Line Items]
Income Tax Examination, Amount of Claimed Income Tax Refund Being Disallowed for Tax Years 2006 and 2007		$ 105
REMIC Residual [Member]
Income Tax Examination [Line Items]
Qualified Deposit With The U.S. Department Of Treasury Relating to Tax Years 2000 Through 2004				$ 85
Qualified Deposit With The U.S. Department Of Treasury Relating To Tax Years 2005 Through 2007			$ 4
Income Tax Examination, Notice of Deficiency, Amounts Related to Unpaid Taxes and Penalties		$ 157
Income Tax Examination, Estimated Interest on Notice of Deficiency Amounts	$ 120
Income Tax Examination, Proposed State Liabilities Resulting from IRS Examination of Tax Years 2000 Through 2007	$ 31

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Note 10 - Long-Term Debt Interest Expense Recognized Related to Convertible Debt (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Convertible Senior Notes Due 2017
Schedule of Interest Expense Recognized Related to Convertible Debt [Line Items]
Contractual interest expense of convertible debt	$ 3,122	$ 3,375	$ 6,497	$ 6,750
Amortization of debt issuance costs	298	304	616	604
Amortization of debt discount	5,394	5,312	11,102	10,498
Total interest expense for convertible debt	8,814	8,991	18,215	17,852
Convertible Senior Notes Due 2019
Schedule of Interest Expense Recognized Related to Convertible Debt [Line Items]
Contractual interest expense of convertible debt	2,250	2,250	4,500	4,500
Amortization of debt issuance costs	330	319	658	635
Amortization of debt discount	3,123	2,934	6,196	5,823
Total interest expense for convertible debt	$ 5,703	$ 5,503	$ 11,354	$ 10,958

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Note 8. Other Assets (Tables)

6 Months Ended

Jun. 30, 2015

Other Assets [Abstract]

Schedule of Other Assets [Table Text Block]

The following table shows the components of other assets for the periods indicated:

(In thousands)	June 30, 2015		December 31, 2014
Deposit with the IRS (Note 12)	$	88,557	$	88,557
Corporate-owned life insurance	81,998		80,755
Prepaid reinsurance premiums	47,835		57,291
Property and equipment (1)	35,380		27,248
Accrued investment income	24,475		20,022
Reinsurance recoverables	13,227		28,119
Deferred policy acquisition costs	9,866		12,003
Other	48,033		43,869
Total other assets	$	349,371	$	357,864

______________________

(1) Property and equipment, at cost less accumulated depreciation of $103.3 million and $100.2 million at June 30, 2015 and December 31, 2014, respectively.

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Note 5 - Investments Schedule of Contractual Maturities (Details) - USD ($) $ in Thousands		24 Months Ended	42 Months Ended
		Jun. 30, 2015	Jun. 30, 2015	Aug. 29, 2017	Dec. 31, 2014
Available-for-sale Securities, Amortized Cost
Available-for-sale Debt Securities, Amortized Cost Basis		$ 1,196,446	$ 1,196,446		$ 528,660
Available-for-sale Securities, Fair Value
Available-for-sale Securities, Debt Securities		1,178,842	1,178,842		536,890
Debt Securities
Available-for-sale Securities, Amortized Cost
Available-for-sale Debt Securities, Amortized Cost Basis		1,196,446	1,196,446
Available-for-sale Securities, Fair Value
Available-for-sale Securities, Debt Securities		1,178,842	1,178,842
Non Asset Backed Security Investments, Contractual Maturities
Available-for-sale Securities, Amortized Cost
Due in one year or less	[1]	7,381	7,381
Due after one year through five years	[1]	51,208	51,208
Due after five years through ten years	[1]	345,233	345,233
Due after ten years	[1]	172,863	172,863
Available-for-sale Securities, Fair Value
Due in one year or less	[1]	7,399	7,399
Due after one year through five years	[1]	51,265	51,265
Due after five years through ten years	[1]	340,126	340,126
Due after ten years	[1]	166,487	166,487
RMBS
Available-for-sale Securities, Amortized Cost
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	[2]	158,134	158,134
Available-for-sale Securities, Fair Value
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	[2]	156,532	156,532
CMBS
Available-for-sale Securities, Amortized Cost
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	[2]	218,531	218,531
Available-for-sale Securities, Fair Value
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	[2]	213,988	213,988
Other ABS
Available-for-sale Securities, Amortized Cost
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	[2]	243,096	243,096
Available-for-sale Securities, Fair Value
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	[2]	243,045	243,045
Mortgage Insurance Segment | 2013 Freddie Mac Agreement [Member] | Minimum [Member] | Scenario, Forecast [Member]
Available-for-sale Securities, Fair Value
Restricted Investments Held as Collateral for Master Transaction Agreement, Net				$ 205,000
Radian Guaranty Inc [Member] | 2013 Freddie Mac Agreement [Member]
Available-for-sale Securities, Fair Value
Restricted Investments Held as Collateral for Master Transaction Agreement, Net		210,300	210,300		$ 209,300
Primary Mortgage Product [Member] | First Lien Position [Member] | Mortgage Insurance Segment | 2013 Freddie Mac Agreement [Member]
Available-for-sale Securities, Fair Value
Final Loss Mitigation Activity		$ 128,000
Not Final Loss Mitigation Activity			$ 13,000

[1] Actual maturities may differ as a result of calls before scheduled maturity.

[2] RMBS, CMBS, and Other ABS are shown separately, as they are not due at a single maturity date.

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Note 14 - Selected Financial Information of Registrant (Notes)

6 Months Ended

Jun. 30, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Selected Financial Information of Registrant - Radian Group

Selected Financial Information of Registrant—Radian Group—Parent Company Only

(In thousands)	June 30, 2015		December 31, 2014
Investment in subsidiaries, at equity in net assets	$	3,018,264	$	2,746,915
Total assets	3,869,439		3,741,648
Long-term debt	1,224,892		1,192,299
Total liabilities	1,507,495		1,569,898
Equity component of currently redeemable convertible senior notes	8,546		74,690
Total stockholders’ equity	2,353,398		2,097,060
Total liabilities and stockholders’ equity	3,869,439		3,741,648

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Note 4 - Fair Value of Financial Instruments (Policies)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments, Policy [Policy Text Block]

In accordance with GAAP, we established a three-level valuation hierarchy for disclosure of fair value measurements based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurements) and the lowest priority to unobservable inputs (Level III measurements). The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety. The three levels of the fair value hierarchy are defined below:

Level I —    Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level II —    Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities; and

Level III —    Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are not available.

The level of market activity used to determine the fair value hierarchy is based on the availability of observable inputs market participants would use to price an asset or a liability, including market value price observations.

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Note 5 - Investments Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Gain (Loss) on Investments [Line Items]
Gain (Loss) on Sale of Other Investments	$ 1	$ (63)	$ 106	$ (53)
Realized Gain (Loss) on Marketable Securities and Cost Method Investments, Excluding Other than Temporary Impairments, and Other Investments	60,429	(708)	55,915	(5,053)
Unrealized (losses) gains on trading securities	(31,638)	28,941	(10,937)	76,572
Total net gains on investments	28,791	28,233	44,978	71,519
Net gains (losses) on other financial instruments	(343)	(2,901)	249	(3,219)
Net gains on investments and other financial instruments	28,448	25,332	45,227	68,300
Fixed Maturities [Member]
Gain (Loss) on Investments [Line Items]
Marketable Securities, Realized Gain (Loss), Excluding Other than Temporary Impairments	0	0	0	(9)
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments	(8)	(604)	(59)	(599)
Equity securities
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments	68,723	0	68,723	0
Trading Securities [Member]
Gain (Loss) on Investments [Line Items]
Trading Securities, Realized Gain (Loss)	(8,291)	(41)	(12,859)	(4,392)
Short-term Investments [Member]
Gain (Loss) on Investments [Line Items]
Gain (Loss) on Sale of Securities, Net	$ 4	$ 0	$ 4	$ 0

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Note 1 - Condensed Consolidated Financial Statements - Basis of Presentation and Business Overview Capital and Liquidity (Details) $ in Thousands			3 Months Ended		6 Months Ended
		Apr. 01, 2015	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) segment	Jun. 30, 2014 USD ($)	Jun. 18, 2015 USD ($)	Dec. 31, 2014 USD ($)
Business Overview [Abstract]
Number of Operating Segments | segment					2
Mortgage Insurance [Abstract]
Stock Repurchase Program, Authorized Amount							$ 202,000
Loss on Repurchase of Debt Instrument			$ 91,876	$ 0	$ 91,876	$ 0
Mortgage Insurance Segment
Mortgage Insurance [Abstract]
Private Mortgage Insurance Protects Lenders For Loans Made With Less Than This Maximum Down Payment Percentage			20.00%		20.00%
Percentage Of Primary Insurance On Domestic First-Lien Mortgages To Total Risk In Force			97.40%		97.40%
First Lien Primary Mortgage Insurance Risk In Force			$ 44,800,000		$ 44,800,000
Percentage Of Pool Insurance On Domestic First-Lien Mortgages To Total Risk In Force			2.50%		2.50%
Bank of America Settlement Agreement [Member] | Mortgage Insurance Segment
BAC Settlement Agreement [Abstract]
Loss Contingency, Settlement Agreement, Percentage of Subject Loans Not Held by Insureds or Are Non-GSE Investors			12.00%		12.00%
Sale of Radian Asset Assurance [Member] | Parent Company
Business Overview [Abstract]
Sale of Stock, Percentage of Ownership before Transaction		100.00%
Senior Notes Due 2020 [Member]
Mortgage Insurance [Abstract]
Long-term debt, Gross			$ 350,000		$ 350,000
Convertible Senior Notes Due 2017
Basis of Presentation and Business Overview [Line Items]
Unamortized Debt Issuance Expense	[1]		451		451			$ 3,974
Mortgage Insurance [Abstract]
Long-term debt, Gross			60,914		$ 60,914			450,000
Extinguishment of Debt, Amount			389,100
Loss on Repurchase of Debt Instrument			$ 91,876
New Accounting Pronouncement, Early Adoption, Effect [Member]
Basis of Presentation and Business Overview [Line Items]
Unamortized Debt Issuance Expense								17,627
New Accounting Pronouncement, Early Adoption, Effect [Member] | Convertible Senior Notes Due 2017
Basis of Presentation and Business Overview [Line Items]
Unamortized Debt Issuance Expense								$ 3,974

[1] Included within long-term debt and is being amortized over the life of the convertible notes.

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net income	$ 50,048	$ 174,833	$ 142,305	$ 377,592
Other comprehensive (loss) income, net of tax (Note 11):
Net foreign currency translation adjustments	158	0	32	0
Unrealized (losses) gains on investments:
Unrealized holding (losses) gains arising during the period	(21,620)	8,633	(15,166)	11,302
Less: Reclassification adjustment for net gains (losses) included in net income	44,664	(393)	44,631	(389)
Net unrealized (losses) gains on investments	(66,284)	9,026	(59,797)	11,691
Net unrealized gains on investments recorded as assets held for sale	(5,082)	647	(3,254)	1,943
Other comprehensive (loss) income, net of tax	(71,208)	9,673	(63,019)	13,634
Comprehensive (loss) income	$ (21,160)	$ 184,506	$ 79,286	$ 391,226

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Note 3 - Segment Reporting (Notes)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Reporting

We currently have two strategic business units that we manage separately—Mortgage Insurance and, effective with the June 30, 2014 acquisition of Clayton, our Services segment. Adjusted pretax operating income for each segment represents segment results on a standalone basis; therefore, inter-segment eliminations and reclassifications required for consolidated GAAP presentation have not been reflected. The operating results of Radian Asset Assurance are classified as discontinued operations for all periods presented in our condensed consolidated statements of operations. Previously, Radian Asset Assurance had represented substantially all of the financial guaranty segment; therefore, we no longer report a financial guaranty business segment. Certain corporate income and expenses that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations, such as corporate investment income, interest expense and corporate overhead expenses, have been reallocated to the Mortgage Insurance segment. Prior periods have been revised to conform to the current period presentation for these changes. See Note 2 for additional information related to discontinued operations.

We allocate to our Mortgage Insurance segment: (i) corporate expenses based on an allocated percentage of time spent on the Mortgage Insurance segment; (ii) all corporate cash and investments; (iii) all interest expense except for interest expense related to the Senior Notes due 2019 that were issued to purchase Clayton; and (iv) for periods prior to the April 1, 2015 sale of Radian Asset Assurance, corporate income and expenses that were previously allocated to our financial guaranty segment and were not allocated to discontinued operations.

We allocate to our Services segment: (i) corporate expenses based on an allocated percentage of time spent on the Services segment; and (ii) as noted above, all interest expense related to the Senior Notes due 2019. No corporate cash or investments are allocated to the Services segment. We have included Clayton’s results of operations from the June 30, 2014 date of acquisition. Inter-segment activities are recorded at market rates for segment reporting and eliminated in consolidation.

Effective with the fourth quarter of 2014, our Services segment undertook the management responsibilities of certain additional loan servicer surveillance functions that were previously considered part of our Mortgage Insurance segment. As a result, these services and activities are now reported in our Services segment for all periods presented.

Adjusted Pretax Operating Income (Loss)

Our senior management, including our Chief Executive Officer (our chief operating decision maker), uses adjusted pretax operating income (loss) as our primary measure to evaluate the fundamental financial performance of each of Radian’s business segments and to allocate resources to the segments. Adjusted pretax operating income (loss) is defined as pretax income (loss) from continuing operations excluding the effects of: net gains (losses) on investments and other financial instruments; loss on induced conversion and debt extinguishment; acquisition-related expenses; amortization and impairment of intangible assets; and net impairment losses recognized in earnings.

Although adjusted pretax operating income (loss) excludes certain items that have occurred in the past and are expected to occur in the future, the excluded items represent those that are: (1) not viewed as part of the operating performance of our primary activities; or (2) not expected to result in an economic impact equal to the amount reflected in pretax income (loss) from continuing operations. These adjustments, along with the reasons for their treatment, are described below.

(1) Net gains (losses) on investments and other financial instruments. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are classified as trading. These valuation adjustments may not necessarily result in economic gains or losses.

Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss). However, we include the change in expected economic loss or recovery associated with our consolidated VIEs, if any, in the calculation of adjusted pretax operating income (loss).

(2) Loss on induced conversion and debt extinguishment. Gains or losses on early extinguishment of debt or losses incurred to purchase our convertible debt prior to maturity are discretionary activities that are undertaken in order to take advantage of market opportunities to strengthen our financial and capital positions; therefore, these activities are not viewed as part of our operating performance. Such transactions do not reflect expected future operations and do not provide meaningful insight regarding our current or past operating trends. Therefore, these items are excluded from our calculation of adjusted pretax operating income (loss).

(3) Acquisition-related expenses. Acquisition-related expenses represent the costs incurred to effect an acquisition of a business (i.e., a business combination). Because we pursue acquisitions on a strategic and selective basis and not in the ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business activity. Therefore, we do not consider these expenses to be part of our operating performance and they are excluded from our calculation of adjusted pretax operating income (loss).

(4) Amortization and impairment of intangible assets. Amortization of intangible assets represents the periodic expense required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite useful life are also periodically reviewed for potential impairment, and impairment adjustments are made whenever appropriate. These charges are not viewed as part of the operating performance of our primary activities and therefore are excluded from our calculation of adjusted pretax operating income (loss).

(5) Net impairment losses recognized in earnings. The recognition of net impairment losses on investments can vary significantly in both size and timing, depending on market credit cycles. We do not view these impairment losses to be indicative of our fundamental operating activities. Therefore, whenever these losses occur, we exclude them from our calculation of adjusted pretax operating income (loss).

Summarized operating results for our segments as of and for the periods indicated, are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Mortgage Insurance
Net premiums written—insurance	$	251,082		$	221,947		$	492,990		$	434,900
Increase in unearned premiums	(13,645		)	(18,301		)	(30,958		)	(32,492		)
Net premiums earned—insurance	237,437			203,646			462,032			402,408
Net investment income (1)	19,285			16,663			36,613			31,981
Other income (1)	1,743			1,620			3,074			2,616
Total	258,465			221,929			501,719			437,005
Provision for losses	31,637			64,648			77,488			114,274
Change in expected economic loss or recovery for consolidated VIEs	—			180			—			319
Policy acquisition costs	6,963			6,746			14,713			13,763
Other operating expenses before corporate allocations	41,853			36,356			75,903			74,120
Total (2)	80,453			107,930			168,104			202,476
Adjusted pretax operating income before corporate allocations	178,012			113,999			333,615			234,529
Allocation of corporate operating expenses (1)	12,516			17,021			22,274			32,905
Allocation of interest expense (1)	20,070			22,348			40,023			42,275
Adjusted pretax operating income	$	145,426		$	74,630		$	271,318		$	159,349

____________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations, as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Net investment income	$	—	$	1,392	$	882	$	2,689
Other income	—		113		26		182
Allocation of corporate operating expenses	—		4,412		2,074		8,561
Allocation of interest expense	—		15,943		9,918		30,498

(2) Includes inter-segment expenses as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Inter-segment expenses	$	1,092	$	—	$	1,994	$	—

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015		2014			2015			2014
Services
Services revenue	$	44,595	$	—		$	76,127		$	—
Other income	—		119			—			249
Total (1)	44,595		119			76,127			249
Direct cost of services	25,501		—			44,754			—
Other operating expenses before corporate allocations	11,522		642			20,379			1,501
Total	37,023		642			65,133			1,501
Adjusted pretax operating income (loss) before corporate allocations	7,572		(523		)	10,994			(1,252		)
Allocation of corporate operating expenses	1,307		—			2,288			—
Allocation of interest expense	4,431		—			8,863			—
Adjusted pretax operating income (loss)	$	1,834	$	(523	)	$	(157	)	$	(1,252	)

____________

(1) Includes inter-segment revenues as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2015		2014		2015		2014
Inter-segment revenues	$	1,092	$	—	$	1,994	$	—

Selected balance sheet information for our segments as of the periods indicated, is as follows:

	At June 30, 2015
(In thousands)	Mortgage Insurance		Services		Total
Total assets	$	5,384,224	$	352,280	$	5,736,504

	At December 31, 2014
(In thousands)	Mortgage Insurance		Services		Total
Assets held for sale (1)	$	—	$	—	$	1,736,444
Total assets	4,769,014		336,878		6,842,336

________________

(1) Assets held for sale are not part of the Mortgage Insurance or Services segments.

The reconciliation of adjusted pretax operating income to consolidated pretax income from continuing operations is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2015			2014			2015			2014
Adjusted pretax operating income (loss):
Mortgage Insurance (1) (2)	$	145,426		$	74,630		$	271,318		$	159,349
Services (2)	1,834			(523		)	(157		)	(1,252		)
Total adjusted pretax operating income	147,260			74,107			271,161			158,097
Net gains on investments and other financial instruments (3)	28,448			25,512			45,227			68,619
Loss on induced conversion and debt extinguishment	(91,876		)	—			(91,876		)	—
Acquisition-related expenses	(567		)	(6,732		)	(774		)	(6,732		)
Amortization and impairment of intangible assets	(3,281		)	—			(6,304		)	—
Consolidated pretax income from continuing operations	$	79,984		$	92,887		$	217,434		$	219,984

______________

(1) For periods prior to the April 1, 2015 sale of Radian Asset Assurance, includes certain corporate income and expenses that have been reallocated to the Mortgage Insurance segment, as listed in the preceding tables. These amounts represent items that were previously allocated to the former financial guaranty segment, but were not reclassified to discontinued operations.

(2) Includes inter-segment expenses and revenues as listed in the notes to the preceding tables.

(3) The change in expected economic loss or recovery associated with our previously owned VIEs is included in adjusted pretax operating income above, although it represents amounts that are not included in net income. Therefore, for purposes of this reconciliation, net gains on investments and other financial instruments has been adjusted by $0.2 million and $0.3 million for the three and six months ended June 30, 2014, respectively, to reverse this item.

On a consolidated basis, “adjusted pretax operating income (loss)” is a measure not determined in accordance with GAAP. Total adjusted pretax operating income (loss) is not a measure of total profitability, and therefore should not be viewed as a substitute for GAAP pretax income (loss). Our definition of adjusted pretax operating income (loss) may not be comparable to similarly-named measures reported by other companies.

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Note 9 - Losses and LAE Mortgage Insurance Reserves by Product (Details) - USD ($) $ in Thousands		Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Liability for Future Policy Benefit, by Product Segment [Line Items]
Reinsurance recoverables		$ 13,227		$ 28,119
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)		1,204,792		1,560,032
Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Reinsurance recoverables	[1]	11,677	$ 13,365	26,665	$ 22,458	$ 25,751	$ 38,363
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)		1,204,792	1,384,714	1,560,032	1,714,681	1,893,960	2,164,353
Liability for Unpaid Claims and Claims Adjustment Expense, Net		1,193,115	$ 1,371,349	1,533,367	$ 1,692,223	$ 1,868,209	$ 2,125,990
Prime Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims		562,918		700,174
First Lien Mortgage Insurance Products [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)		1,203,817		1,558,615
Second Lien Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)	[2]	975		1,417
Alt A Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims		256,854		292,293
A Minus and Below Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims		148,043		179,103
Primary Mortgage Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Incurred but Not Reported Claims		125,038		223,114
Liability for Claims Adjustment Expense		48,141		56,164
Reinsurance recoverables	[3]	11,677		26,665
Total Primary Insurance Mortgage Insurance Products [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)		1,152,671		1,477,513
Pool Insurance Mortgage Insurance Product [Member] | Mortgage Insurance Segment
Liability for Future Policy Benefit, by Product Segment [Line Items]
Liability for Unpaid Claims		47,902		75,785
Liability for Incurred but Not Reported Claims		891		1,775
Liability for Claims Adjustment Expense		2,353		3,542
Reserve for losses and loss adjustment expense (“LAE”) (Note 9)		$ 51,146		$ 81,102

[1] Related to ceded losses on captive reinsurance transactions and the QSR Transactions. See Note 7 for additional information.

[2] Does not include our Second-lien PDR that is included in other liabilities.

[3] Primarily represents ceded losses on captive transactions and the QSR Transactions.

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Note 14 - Selected Financial Information of Registrant Selected Financial Information of Registrant (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]
Total assets	$ 5,736,504	$ 6,842,336
Long-term debt	1,224,892	1,192,299
Total liabilities	3,374,560	4,670,586
Equity component of currently redeemable convertible senior notes	8,546	74,690
Total stockholders' equity	2,353,398	2,097,060
Total liabilities and stockholders' equity	5,736,504	6,842,336
Parent Company
Condensed Financial Statements, Captions [Line Items]
Investments in subsidiaries, at equity in net assets	3,018,264	2,746,915
Total assets	3,869,439	3,741,648
Long-term debt	1,224,892	1,192,299
Total liabilities	1,507,495	1,569,898
Equity component of currently redeemable convertible senior notes	8,546	74,690
Total stockholders' equity	2,353,398	2,097,060
Total liabilities and stockholders' equity	$ 3,869,439	$ 3,741,648

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Note 12 - Income Taxes (Policies)

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Tax, Policy [Policy Text Block]

We provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for income taxes. As required under this standard, our DTAs and DTLs are recognized under the balance sheet method, which recognizes the future tax effect of temporary differences between the amounts recorded in our condensed consolidated financial statements and the tax bases of these amounts. DTAs and DTLs are measured using the enacted tax rates expected to apply to taxable income in the periods in which the DTA or DTL is expected to be realized or settled.

Our provision for income taxes for interim financial periods is based on an estimate of our annual effective tax rate for continuing operations for the full year. When estimating our full year 2015 and 2014 annual effective tax rate, we accounted for the tax effects of gains and losses on our investments, changes as a result of the accounting standard regarding the accounting for uncertainty in income taxes, and other adjustments discretely at the federal applicable tax rate.

We are required to establish a valuation allowance against our DTAs when it is more likely than not that all or some portion of our DTAs will not be realized. At each balance sheet date, we assess our need for a valuation allowance. Our assessment is based on all available evidence, both positive and negative. This requires management to exercise judgment and make assumptions regarding whether our DTAs will be realized in future periods.

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Note 16 - Capital Stock Capital Stock (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Jun. 30, 2015	Jun. 18, 2015
Class of Stock [Line Items]
Stock Repurchase Program, Authorized Amount		$ 202.0
Stock Repurchased During Period, Shares	9.2
Convertible Senior Notes Due 2017
Class of Stock [Line Items]
Extinguishment of Debt, Amount	$ 389.1
Payments of Debt Extinguishment Costs	$ 126.8
Debt Conversion, Converted Instrument, Shares Issued	28.4
Convertible Debt, Termination of Capped Call Transaction, Total Consideration	$ 54.9
Convertible Debt, Termination of Capped Call Transaction, Number of Shares Received	2.3
Convertible Debt, Termination of Capped Call Transaction, Total Cash Received	$ 12.0

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Note 13 - Statutory Information (Tables)

6 Months Ended

Jun. 30, 2015

Statutory Information [Abstract]

Risk To Capital Calculation [Table Text Block]

Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital calculation, as well as the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus (i.e., statutory capital and surplus) plus statutory contingency reserves.

	June 30, 2015		December 31, 2014
($ in millions)
RIF, net (1)	$	32,290.6	$	30,615.7
Statutory policyholders’ surplus	$	1,367.0	$	1,325.2
Contingency reserve	592.7		389.4
Statutory capital	$	1,959.7	$	1,714.6
Risk-to-capital	16.5:1		17.9:1

_______________________

(1) Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans.

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Note 13 - Statutory Information (Notes)

6 Months Ended

Jun. 30, 2015

Statutory Information [Abstract]

Statutory Information

Statutory Information

We prepare our statutory financial statements in accordance with the accounting practices required or permitted, if applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries. Required statutory accounting practices are established by a variety of publications of the NAIC as well as state laws, regulations and general administrative rules. In addition, insurance departments have the right to permit other specific practices that may deviate from prescribed practices. As of June 30, 2015, our use of any prescribed or permitted statutory accounting practices did not result in reported statutory surplus or risk-based capital being significantly different from what would have been reported if NAIC statutory accounting practices had been followed.

The state insurance regulations include various capital requirements and dividend restrictions based on our insurance subsidiaries’ statutory financial position and results of operations, as described below. Failure to maintain adequate levels of capital could lead to intervention by the various insurance regulatory authorities, which could materially and adversely affect our business, business prospects and financial condition. As of June 30, 2015, the amount of restricted net assets held by our consolidated insurance subsidiaries (which represents our equity investment in those insurance subsidiaries) totaled $2.6 billion of our consolidated net assets.

Radian Guaranty

Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, a minimum ratio of statutory capital relative to the level of net RIF, or “Risk-to-capital.” The sixteen RBC States currently impose a Statutory RBC Requirement. The most common Statutory RBC Requirement is that a mortgage insurer’s Risk-to-capital may not exceed 25 to 1. In certain of the RBC States, a mortgage insurer must satisfy an MPP Requirement. The statutory capital requirements for the non-RBC States are de minimis (ranging from $1 million to $5 million); however, the insurance laws of these states generally grant broad supervisory powers to state agencies or officials to enforce rules or exercise discretion affecting almost every significant aspect of the insurance business, including the power to revoke or restrict an insurance company’s ability to write new business. Unless an RBC State grants a waiver or other form of relief, if a mortgage insurer is not in compliance with the Statutory RBC Requirement of that state, the mortgage insurer may be prohibited from writing new mortgage insurance business in that state. Radian Guaranty’s domiciliary state, Pennsylvania, is not one of the RBC States. For the six months ended June 30, 2015 and the year ended December 31, 2014, the RBC States accounted for approximately 56% of Radian Guaranty’s total primary NIW in each period.

Radian Guaranty was in compliance with the Statutory RBC Requirements or MPP Requirements, as applicable, in each of the RBC States as of June 30, 2015. See Note 1 for information regarding potential changes to the Model Act (which may result in more stringent Statutory RBC Requirements and MPP Requirements in states that adopt the Model Act) as well as the PMIERs for GSE eligibility.

Radian Guaranty’s Risk-to-capital calculation appears in the table below. For purposes of the Risk-to-capital calculation, as well as the Risk-to-capital requirements imposed by certain states, statutory capital is defined as the sum of statutory policyholders’ surplus (i.e., statutory capital and surplus) plus statutory contingency reserves.

	June 30, 2015		December 31, 2014
($ in millions)
RIF, net (1)	$	32,290.6	$	30,615.7
Statutory policyholders’ surplus	$	1,367.0	$	1,325.2
Contingency reserve	592.7		389.4
Statutory capital	$	1,959.7	$	1,714.6
Risk-to-capital	16.5:1		17.9:1

_______________________

(1) Excludes risk ceded through reinsurance contracts (to third parties and affiliates) and RIF on defaulted loans.

The reduction in Radian Guaranty’s Risk-to-capital in the first six months of 2015 was primarily due to increases in statutory net income, partially offset by an increase in net RIF at Radian Guaranty. For the six months ended June 30, 2015, Radian Guaranty had statutory net income of $295.7 million.

We have actively managed Radian Guaranty’s capital position in various ways, including: (1) through internal and external reinsurance arrangements; (2) by seeking opportunities to reduce our risk exposure through negotiated transactions; and (3) by contributing additional capital from Radian Group. Given our current financial projections for Radian Guaranty, which are subject to risks and uncertainties, we expect Radian Guaranty’s Risk-to-capital to decrease over time.

Radian Asset Assurance

Radian Asset Assurance was our financial guaranty subsidiary and was, until the April 1, 2015 sale date, domiciled and licensed in New York as a monoline financial guaranty insurer. It was also licensed under the New York insurance laws to write some types of surety insurance and credit insurance. See Note 2 for additional information related to discontinued operations.